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Calculation Of Cost Assigned To A Product

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, $48,300; Supervising, $28,800; and Other, $19,600. 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:

 

MHs (Processing)

Batches (supervising)

Product S5

16,500

1,530

Product F5

1,120

340

Total

17,620

1,870

What is the overhead cost assigned to Product S5 under activity-based costing?

a. $23,562.00

b. $45,210.00

c. $68,772.00

d. $53,304.00

 

Summary

The question belongs to Accounting and it discusses about calculation of overhead cost assigned to a product.

Total Word Count 24

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