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Question(s) / Instruction(s):

Activity rates from Quattrone Corporations activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

  Activity Cost Pools                                         Activity Rate

  Processing customer orders                            $101.81   per customer order

  Assembling products                                     $3.46      per assembly hour

  Setting up batches                                        $57.78   per batch

Last year, Product F76D involved 5 customer orders, 483 assembly hours, and 22 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

a)            $68,360.23

b)            $3,451.39

c)            $1,598.08

d)            $1,271.16

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