Question: XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis of machine hours. They have

XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis of machine hours. They have two products, A and B. XAA is considering a shift to activity-based costing and has created three cost pools. Data on the cost pools and respective driver are shown below.

	Pool 1	Pool 2	Pool 3
Product	Driver: Machine hour	Driver: setup	Driver: parts
A	1,200	45	2,250
B	2,800	55	750
Pool Cost $	160,000	280,000	360,000

The overhead cost allocated to product A by using activity-based costing procedures would be:___________.

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