What is the activity-based costing system


Response to the following problem:

Activity rates from Quattrone Corporation's 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 Cutomer Orders 92.86

Assembling Products 1.78

Setting Up Batches 52.09

Last year, Product F76D involved 2 customer orders, 434 assembly hours, and 20 batches.

How much overhead cost would be assigned to Product F76D using the activity-based costing system?

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Managerial Accounting: What is the activity-based costing system
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