Question
Smile Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. ACTIVITY COST POOLS ACTIVITY RATE Setting up batches
Smile Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
| ACTIVITY COST POOLS | ACTIVITY RATE |
| Setting up batches | $ 28.37 per batch |
| Assembling products | $ 5.83 per assembly hour |
| Processing customer orders | $ 81.73 per customer order |
Data concerning two products appear below:
| Product W30 | Product W40 | |
| Number of batches | 24 | 34 |
| Number of assembly hours | 577 | 515 |
| Number of customer orders | 21 | 29 |
How much overhead cost would be assigned to Product W30 using the company's activity-based costing system? Show your work!
.
Which of the following levels of costs should not be allocated to products for decision-making purposes?
| Batch-level activities. |
| Unit-level activities. |
| Organization-sustaining activities. |
| Product-level activities. |
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Understanding And Conducting Information Systems Auditing
Authors: Arif Ahmed, Veena Hingarh
1st Edition
1118343743, 978-1118343746
