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Dee Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Activity Base Setting
Dee Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. | |||||||||
Activity Cost Pools | Activity Rate | Activity Base | |||||||
Setting up batches | $ 32.22 | per batch | |||||||
Assembling products | $ 6.13 | per assembly hour | |||||||
Processing customer orders | $ 72.75 | per customer order | |||||||
Data concerning two products appear below: | |||||||||
Product U96S | Product F06Q | ||||||||
Number of batches | 78 | 24 | |||||||
Number of assembly hours | 412 | 178 | |||||||
Number of customer orders | 53 | 18 | |||||||
Required: | |||||||||
a. How much overhead cost would be assigned to Product U96S using the company's activity-based costing system? Show your work! | |||||||||
b. How much overhead cost would be assigned to Product F06Q using the company's activity-based costing system? Show your work! | |||||||||
c. What is the company's total overhead cost? | |||||||||
U96S | F06Q | ||||||||
Activity Cost Pool | Activity Rate | Expected Activity | Estimated Overhead Cost | Expected Activity | Estimated Overhead Cost | ||||
Setting up batches | |||||||||
Assembling products | |||||||||
Processing customer orders | |||||||||
Total overhead cost | (a)
| (b)
| |||||||
| |||||||||
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