**Activity-Based Costing for Overhead Assignment**Gould Corporation utilizes the following activity-based costing (ABC) rates to allocate overhead costs to its products:- **Activity Cost Pool:** - Setting up batches: $59.41 per batch - Processing customer orders: $72.87 per customer order - Assembling products: $4.10 per assembly hour**Product Data:**Here is the data for two products, K91B and F650:- **Product K91B:** - Number of batches: 86 - Number of customer orders: 36 - Number of assembly hours: 490- **Product F650:** - Number of batches: 57 - Number of customer orders: 50 - Number of assembly hours: 897**Calculation Task:**Determine the overhead cost assigned to Product K91B using the activity-based costing system. Ensure that you round your intermediate calculations and final results to two decimal places.

Overhead cost assigned = Activity rate*Activity used

Answered: Gould 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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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 284,000 $ 6,790 $ 71,340 $ 57,900 $ 229,900 Product A 3,000 43 22 530 3,600 Expected Activity 35,500 DLHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: 194 orders 82 part types 1,930 boards 20,900 MHs Expected Activity Product B 22,800 Activity Cost Pool Product C Product D 3,900 5,800 Labor-related (DLHS) Purchase orders (orders) 20 48 83 Parts management (part types) 15 32 13 Board etching (boards) 750 650 0 General factory (MHS) 7,300 3,900 6,100 Using the…
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Haresh
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