Managerial Accounting

Archie 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 $ 77.01 per batch
Processing customer orders $ 57.65 per customer order
Assembling products $ 1.48 per assembly hour

Last year, Product X26X required 35 batches, 1 customer order, and 370 assembly hours.

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Required:

How much overhead cost would be assigned to Product X26X using the company's activity-based costing system?

If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

 

A) $27,500
B) $28,500
C) $20,500
D) $43,500

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