A company uses activity-based costing to determine the costs of its three products: A, B, and C.
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Question:
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 groups are shown in the following table:
Budgeted Activity | ||||
Activity Cost Pool | budgeted cost | Product A | Product B | Product C |
Activity 1 | $70,000 | 6,000 | 9,000 | 20,000 |
Activity 2 | $45,000 | 7,000 | 15,000 | 8,000 |
Activity 3 | $82,000 | 2,500 | 1,000 | 1,625 |
How much overhead will be allocated to Product B using activity-based costing?
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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