Question: X Company uses an activity-based costing overhead allocation system. It has identified the following three overhead activities and costs. Activity Budgeted Cost Setup $104,000 Purchasing
X Company uses an activity-based costing overhead allocation system. It has identified the following three overhead activities and costs.
| Activity | Budgeted Cost |
| Setup | $104,000 |
| Purchasing | 54,000 |
| Packaging | 61,000 |
| Total | $219,000 |
The following relevant cost driver information is available for the company's only two products, A and B:
| Cost Driver | Product A | Product B |
| setup hours | 22,900 | 55,300 |
| purchase orders | 34,000 | 41,200 |
| packages | 67,800 | 27,000 |
How much overhead was allocated to Product A [round overhead rate(s) to two decimal places]?
| A: $84,042 | B: $98,329 | C: $115,045 | D: $134,603 | E: $157,485 | F: $184,257 |
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