Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below:
How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
A) $10,241.53
B) $92,173.77
C) $5,300.84
D) $136.77

Question

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:  Data concerning two products appear below:
 How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
A) $10,241.53 
B) $92,173.77 
C) $5,300.84 
D) $136.77

Quizplus · Accepted Answer

Overhead cost assigned to Product K91B = (Cost driver rate for Machine-hours x Machine-hours for Product K91B) + (Cost driver rate for Setups x Setups for Product K91B) + (Cost driver rate for Material-handling x Material-handling for Product K91B)
= (2.47 x 2,500) + (688.64 x 2) + (1.01 x 4,200)
= $10,241.53 (rounded to 2 decimal places)

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