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

Multiple Choice

Portofino Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: $\begin{array}{llr}\text { Activity Cost Pools } & \text {Activity Rate }\\ \text { Setting up batches} & \text {\$ 79.50 per batch}\\ \text {Processing customer orders } & \text {\( \$ 71.31 \) per customer order}\\ \text { Assembling products } & \text {\( \$ 7.06 \) per assembly hour}\\\end{array}$


$\text { Data concerning two products appear below: }$

$\begin{array}{lrr}&\text { Product KJ22}&\text { Product KL 37}\\\text { Number of batches } & 69 & 12 \\\text { Number of customer orders } & 20 & 9 \\\text { Number of assembly orders } & 492 & 697\end{array}$
- How much overhead cost would be assigned to Product KL37 using the activity-based costing
System?

A) $5,874.82
B) $10,385.22
C) $6,516.61
D) $5,562.61
E) $1,595.79