What is the overhead cost assigned to Product R6 under activity-based costing?
A)$44,000
B)$60,900
C)$18,145
D)$42,755

Question

Quizplus · Accepted Answer

In the activity-based costing table, the overhead cost assigned to Product R6 is calculated by multiplying the cost driver rate for each activity by the activity level for Product R6. 
For activity 1: ($10 per machine hour) x (4,000 machine hours) = $40,000
For activity 2: ($2 per inspection) x (3,450 inspections) = $6,900
Total overhead cost assigned to Product R6 is $46,900.
Therefore, the correct answer is B, $60,900.

What Is the Overhead Cost Assigned to Product R6 Under