Ask Question
26 March, 09:18

Ekmark Corporation uses the following activity rates from its activity based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Assembling products $6.56 per assembly hour Processing customer orders $65.38 per customer order Setting up batches $82.84 per batch Data for one of the company's products follow: Product P59G Number of assembly hours 240 Number of customer orders 48 Number of batches 64 How much overhead cost would be assigned to Product P59G using the activity based costing system

+4
Answers (1)
  1. 26 March, 09:46
    0
    The correct answer is $10,014.40.

    Explanation:

    According to the scenario, computation of the given data are as follows:

    Total cost of assembling = $6.56 * 240 = $1,574.40

    Total cost of processing customer order = $65.38 * 48 = $3,138.24

    Total cost of setting up batches = $82.84 * 64 = $5,301.76

    So, we can calculate the total overhead cost by using following formula:

    Total Overhead = $1,574.40 + $3,138.24 + $5,301.76

    = $10,014.40
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Ekmark Corporation uses the following activity rates from its activity based costing to assign overhead costs to products: Activity Cost ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers