Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activities Activity Rate $83.00 per batch Setting up batches Processing customer orders Assembling products $9.61 per assembly hour $74.29 per customer order Data concerning two products appear below: Product V09X Product A09X Number of batches 71 14 Number of customer orders 22 11 699 Number of assembly hours 494 How much overhead cost would be assigned to Product V09X using the activity-based costing system? a. $166.90 b. $135,021.92 c. $12,274.72 d. $5,893.00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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Gould Corporation uses the following activity rates from its activity-based
costing to assign overhead costs to products:
Activities
Activity Rate
$83.00 per batch
Setting up batches
Processing customer orders
Assembling products
$9.61 per assembly hour
$74.29 per customer order
Data concerning two products appear below:
Product V09X Product A09X
Number of batches
71
14
Number of customer orders 22
11
699
Number of assembly hours 494
How much overhead cost would be assigned to Product V09X using the
activity-based costing system?
a. $166.90
b. $135,021.92
c. $12,274.72
d. $5,893.00
Transcribed Image Text:Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activities Activity Rate $83.00 per batch Setting up batches Processing customer orders Assembling products $9.61 per assembly hour $74.29 per customer order Data concerning two products appear below: Product V09X Product A09X Number of batches 71 14 Number of customer orders 22 11 699 Number of assembly hours 494 How much overhead cost would be assigned to Product V09X using the activity-based costing system? a. $166.90 b. $135,021.92 c. $12,274.72 d. $5,893.00
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