Question
1 KK Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. (1.5 Marks) Activity Cost Pools Activity Rate
- 1 KK Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. (1.5 Marks)
| Activity Cost Pools | Activity Rate |
| Setting Up Batches | SAR 83.75 Per Batch |
| Assembling Products | SAR 2.88 per assembly hours |
| Processing Customer orders | SAR 50.41 per Customer order |
Data concerning two products appear below:
| Particulars | Product A | Product B |
| Number of Batches | 34 | 41 |
| Number of Assembly Hours | 105 | 824 |
| Number of Customer orders | 17 | 38 |
Required: a. How much overhead cost would be assigned to Product A using the company's activity-based costing system? Show your work! b. How much overhead cost would be assigned to Product B using the company's activity-based costing system? Show your work!
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
