Maxim Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
$$\begin{array} { l c c }
\text { Activity Cost Pools } & { \text { Activity Rate } } \
\text { Batch Setup } & \$ 74.76 \text { per batch } \
\text { Processing customer orders } & \$ 55.40 \text { per customer order } \
\text { Assembling products } & \$ 1.36 \text { per assembly hour }
\end{array}$$
Last year, Product P involved 33 batches, 1 customer order, and 368 assembly hours.
Required:
How much overhead cost would be assigned to Product P using the company's activity-based costing system? Show your work.

Question

Maxim Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
 $$\begin{array} { l c c } 
\text { Activity Cost Pools } &  { \text { Activity Rate } } \
\text { Batch Setup } & \$ 74.76 \text { per batch } \
\text { Processing customer orders } & \$ 55.40 \text { per customer order } \
\text { Assembling products } & \$ 1.36 \text { per assembly hour }
\end{array}$$ 
Last year, Product P involved 33 batches, 1 customer order, and 368 assembly hours.
Required:
How much overhead cost would be assigned to Product P using the company's activity-based costing system? Show your work.

Quizplus · Accepted Answer

The Answer of Maxim Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
 $$\begin{array} { l c c } 
\text { Activity Cost Pools } &  { \text { Activity Rate } } \
\text { Batch Setup } & \$ 74.76 \text { per batch } \
\text { Processing customer orders } & \$ 55.40 \text { per customer order } \
\text { Assembling products } & \$ 1.36 \text { per assembly hour }
\end{array}$$ 
Last year, Product P involved 33 batches, 1 customer order, and 368 assembly hours.
Required:
How much overhead cost would be assigned to Product P using the company's activity-based costing system? Show your work.

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