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

Question 139

Essay

Safety Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
 Activity Cost Pools  Activity Rate  Batch Setup $62.52 per batch  Processing customer orders $19.58 per customer order  Assembling products $8.71 per assembly hour \begin{array} { l c c } \text { Activity Cost Pools } &{ \text { Activity Rate } } \\\text { Batch Setup } & \$ 62.52 \text { per batch } \\\text { Processing customer orders } & \$ 19.58 \text { per customer order } \\\text { Assembling products } & \$ 8.71 \text { per assembly hour }\end{array}
Data concerning two products appear below:
 Praduct C  Praduct E  Nurnber of batches 6653 Nurnber of customer arders 4631 Nurnber of assernbly hours 419162\begin{array} { | l | r | r | } \hline & \text { Praduct C } & \text { Praduct E } \\\hline \text { Nurnber of batches } & 66 & 53 \\\hline \text { Nurnber of customer arders } & 46 & 31 \\\hline \text { Nurnber of assernbly hours } & 419 & 162 \\\hline\end{array}
Required:
How much overhead cost would be assigned to each of the products using the company's activity-based costing system?

Correct Answer:

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