X Company only makes two products, A and B, and uses anactivity-based costing overhead allocation system, with three costpools and three cost drivers. Budgeted costs and driver informationfor 2022 are as follows:

	Setup	Product Testing	Packaging
Budgeted costs	$108,000	$51,000	$25,000
Cost Drivers	setup hours	tests	packages
Product A	86,000 hours	64,400 tests	72,900 packages
Product B	68,300 hours	48,600 tests	53,700 packages
Total	154,300 hours	113,000 tests	126,600 packages

Q) What will the allocation to Product B be round overheadrates to two decimal places

Answer rating: 100% (QA)

Answer To allocate overhead costs to Product B using the activitybased costing ABC system we first n... View the full answer