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Gresham Company has struggled with costing its recreational vehicle accessory products. Gresham uses the following activity rates from its activity-based costing to assign overhead costs
Gresham Company has struggled with costing its recreational vehicle accessory products. Gresham uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Rate Setting up batches Processing customer orders Assembling products $59.21per batch $72.75per customer order $3.90per assembly hour Data concerning two products appear below: Product ABC Product XYZ Number of batches 82 53 Number of customer orders 32 46 Number of assembly hours 486 893 How much overhead cost would be assigned to Product ABC using the activity-based costing system? $9,078.62 $135.86 $4,855.22 $81,707.58
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