Question
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Activity Budgeted Cost Product A Product B Product C $72,000 6,200 9,200 20,200 $47,000 7,200 15,200 8,200 $86,000 2,700 1,200 1,825 How much overhead will be assigned to Product B using activity-based costing?
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