Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost PoolsActivity RateSetting up batches$ 83.25per batchAssembling products$ 13.88per assembly hourProcessing customer orders$ 61.41per customer order Data concerning two products appear below: Product S96UProduct Q06FNumber of batches3345Number of assembly hours104844Number of customer orders1633Required:a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.) b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)

Activity-based costing refers to the concept under which the cost of inventory is determined on the…

Answered: arlais Corporation uses the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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

Activity Cost Pools	Activity Rate
Setting up batches	$ 83.25	per batch
Assembling products	$ 13.88	per assembly hour
Processing customer orders	$ 61.41	per customer order

Data concerning two products appear below:

	Product S96U	Product Q06F
Number of batches	33	45
Number of assembly hours	104	844
Number of customer orders	16	33

Required:

a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)

b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? (Round your intermediate calculations and final answer to 2 decimal places.)

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