Safety Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Data concerning two products appear below:
$$\begin{array} { | l | r | r | }
\hline & \text { Product C } & \text { Product E } \
\hline \text { Number of batches } & 66 & 53 \
\hline \text { Number of customer orders } & 46 & 31 \
\hline \text { Number of assembly hours } & 419 & 162 \
\hline
\end{array}$$
Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

Question

Safety Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Data concerning two products appear below:
$$\begin{array} { | l | r | r | } 
\hline & \text { Product C } & \text { Product E } \
\hline \text { Number of batches } & 66 & 53 \
\hline \text { Number of customer orders } & 46 & 31 \
\hline \text { Number of assembly hours } & 419 & 162 \
\hline
\end{array}$$
  Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

Quizplus · Accepted Answer

The Answer of Safety Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Data concerning two products appear below:
$$\begin{array} { | l | r | r | } 
\hline & \text { Product C } & \text { Product E } \
\hline \text { Number of batches } & 66 & 53 \
\hline \text { Number of customer orders } & 46 & 31 \
\hline \text { Number of assembly hours } & 419 & 162 \
\hline
\end{array}$$
  Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

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