Hi there! I am just having some issues grasping the concept of Activity Based Costing in Managerial Accounting and was wondering if anyone could help. My professor suggested a question that I should practice with, but I am still having troubles understanding it completely. Here is the scenario:

A company uses activity-based costing. The company manufactures

two products, X & Y. The annual production and sales of Products X & Y are 3,000 and 2,000

units, respectively. There are three activity cost pools, with estimated total cost and expected

activity as follows:

(Ive attached a table I made that provides the information of the scenario)

Expected Activity Cost Pool Estimated Cost X Y Total Activity 1 $12,000 300 500 800 Activity 2 15,000 100 400 500 Activity 3 32,000 400 1,200 1,600 Total costs $59,000