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Work Horse Corporation Uses the Following Activity Rates from Its

Question 133

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Work Horse Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
 Activity Cost Pools  Activity Rate  Batch Setup $83.75 per batch  Assembling products $2.88 per assembly hour  Processing customer orders $50.41 per customer order \begin{array} { l c c } \text { Activity Cost Pools } & \text { Activity Rate } \\\text { Batch Setup } & \$ 83.75 \text { per batch } \\\text { Assembling products } & \$ 2.88 \text { per assembly hour } \\\text { Processing customer orders } & \$ 50.41 \text { per customer order }\end{array}
Data concerning two products appear below:
 Praduct J  Praduct S  Number of batches 3441 Number of assembly hours 105824 Number of customer orders 1738\begin{array} { | l | r | r | } \hline & \text { Praduct J } & { \text { Praduct S } } \\\hline \text { Number of batches } & 34 & 41 \\\hline \text { Number of assembly hours } & 105 & 824 \\\hline \text { Number of customer orders } & 17 & 38 \\\hline\end{array}
Required:
a. How much overhead cost would be assigned to Product J using the company's activity-based costing system? Show your work.
b. How much overhead cost would be assigned to Product S using the company's activity-based costing system? Show your work!

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