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Q. 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 Setting
Q. 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 Setting Up Batches Assembling Products Processing Customer orders Activity Rate SAR 83.75 Per Batch SAR 2.88 per assembly hours SAR 50.41 per Customer order Data concerning two products appear below: Particulars Number of Batches Number of Assembly Hours Number of Customer orders Product A 34 105 17 Product B 41 824 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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