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Assignment of overhead cost

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

Solution Summary

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

$2.19