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    Assignment of overhead cost

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

    Activity cost pools Activity rate

    Assembling products $2.36 per assembly hour
    Processing customers orders $47.73 per customer order
    Setting up batches $75,73 per batch

    Data for one of the company's products follow:

    Product Q79P

    Number of assembly hours 247
    Number of customer orders 37
    Number of batches 63

    How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

    A) $7,119.92
    B) $43,659.54
    C) $4,770.99
    D) $125.82

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    Solution Summary

    The solution explains how to calculate the amount to overhead cost to be assigned to a product using activity based costing