A company has two products: A and B. It uses a plantwide overhead allocation method based on activity 2 and has prepared the following analysis showing budgeted costs and activities. Use this information to compute
(a) The company's plant wide overhead rate and
(b) The amount of overhead allocated to Product A.

Transcribed Image Text:

Budgeted ctivity Budgeted Overhead Cost S160,000 S110,000 S180,000 Activity Cost Pool Product A Product B otal ctivity I Activity 2 Activity 3 Total budgeted overhead 400 2,000 1,200 1,600 1,000 10,800 2,000 3,000 12,000 S450,000