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

question 120

Essay

Safety Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
$$\begin{array} { l c c } \text { Activity Cost Pools } &{ \text { Activity Rate } } \\\text { Batch Setup } & \$ 62.52 \text { per batch } \\\text { Processing customer orders } & \$ 19.58 \text { per customer order } \\\text { Assembling products } & \$ 8.71 \text { per assembly hour }\end{array}$$
Data concerning two products appear below:
$$\begin{array} { | l | r | r | } \hline & \text { Praduct C } & \text { Praduct E } \\\hline \text { Nurnber of batches } & 66 & 53 \\\hline \text { Nurnber of customer arders } & 46 & 31 \\\hline \text { Nurnber of assernbly hours } & 419 & 162 \\\hline\end{array}$$
Required:
How much overhead cost would be assigned to each of the products using the company's activity-based costing system?

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Definitions:

Budgeting Approach

A method or strategy for allocating financial resources and planning future expenses to achieve financial objectives.

Long-Range Plan

A strategic framework outlining the vision, objectives, and actions intended to be implemented over an extended period, typically spanning several years.

Target Corporation

An American retail company that operates large discount store chains and is known for offering a wide variety of goods at competitive prices.

Zellers Inc.

A defunct Canadian chain of discount department stores that was founded in 1931 and closed in 2013.