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Problem

Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

            Activity Cost Pools

Activity Rate

  Setting up batches

$

84.01

per batch

  Processing customer orders

$

64.65

per customer order

  Assembling products

$

1.88

per assembly hour

Last year, Product N79A required 35 batches, 1 customer orders, and 370 assembly hours.

Required:

How much overhead cost would be assigned to Product N79A using the company's activity-based costing system?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92766894

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