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Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pools
Activity Rate
Assembling products.......................
$8.90
per assembly hour
Processing customer orders.............
$31.23
per customer order
Setting up batches...........................
$43.72
per batch
Data for one of the company’s products follow:
Product U94W
Number of assembly hours...............
389
Number of customer orders.............
53
Number of batches..........................
61
How much overhead cost would be assigned to Product U94W using the activity-based costing system?
1.
$42,176.55
2.
$83.85
3.
$7,784.21
4.
$2,666.92
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