Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $42,700; Supervising, $26,900; and Other, $17,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
-What is the overhead cost assigned to Product S5 under activity-based costing?
A)$58,968
B)$43,500
C)$18,830
D)$40,138

Question

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $42,700; Supervising, $26,900; and Other, $17,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: 
-What is the overhead cost assigned to Product S5 under activity-based costing?
A)$58,968 
B)$43,500 
C)$18,830 
D)$40,138

Quizplus · Accepted Answer

Processing: $42,700 F1F1F1S1F1F1F10 10,000 MHs = $4.27 per MH
Supervising: $26,900 F1F1F1S1F1F1F10 1,000 batches = $26.90 per batch
Overhead cost for Product S5:
 11eaa48f_7b93_7079_9e4a_8bdd746f475e_TB2485_00

Umanzor Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products