Suoboda Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
How much overhead cost would be assigned to Product I90W using the activity-based costing system?
A) $316.56
B) $105.05
C) $4,371.90
D) $59,038.10

Question

Suoboda Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: 
How much overhead cost would be assigned to Product I90W using the activity-based costing system?
A) $316.56 
B) $105.05 
C) $4,371.90 
D) $59,038.10

Quizplus · Accepted Answer

The overhead cost assigned to Product I90W using the activity-based costing system would be calculated by multiplying each activity rate by the amount of activity used by I90W. The total overhead cost for I90W is $4,371.90, which is the sum of ($160 x 2) + ($711.90 x 1) + ($1,400 x 1) + ($1,100 x 1) + ($500 x 2).

Suoboda Corporation Uses the Following Activity Rates from Its Activity-Based