Wecker Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product V09X using the activity-based costing system?
A)$157.87
B)$91,722.47
C)$10,385.22
D)$5,485.50

Question

Wecker Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:  Data concerning two products appear below:  How much overhead cost would be assigned to Product V09X using the activity-based costing system?
A)$157.87 
B)$91,722.47 
C)$10,385.22 
D)$5,485.50

Quizplus · Accepted Answer

Using the activity-based costing system, the overhead cost assigned to Product V09X can be calculated as follows:

Activity cost for Product V09X = (Activity rate x Activity level for Product V09X)
Activity cost for Product V09X = ($32.10 per unit x 323 units)
Activity cost for Product V09X = $10,385.22

Therefore, the overhead cost assigned to Product V09X is $10,385.22. The correct option is C.

Wecker Corporation Uses the Following Activity Rates from Its Activity-Based