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A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table



Budgeted Activity
  Activity Cost Pool Budgeted Cost Product A Product B Product C
  Activity 1 $164,500 9,000 12,000 26,000
  Activity 2 $126,000 10,000 21,000 11,000
  Activity 3 $120,750 3,100 1,600 2,200

How much overhead will be assigned to Product B using activity-based costing?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9947082

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