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Following activity rates from an activity-based costing system to assign overhead costs to products. How much overhead cost would be assigned to each of the two products using the company's activity-based costing system (Can you explain it to me when working the problem so that I actually understand it please. Thanks!

Activity Cost Pools

Activity Rate

Setting up batches

$34.47

per batch

Processing customer orders

$66.77

per customer order

Assembling products

$2.66

per assembly hour

Two products data:

 

Product G32H

Product U15Z

Number of batches

79

48

Number of customer orders

36

31

Number of assembly hours

487

417

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92576880
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