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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
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 activities are shown in the following table:
Activity | Budgeted Cost | Activity Cost Driver | Budgeted Activity | ||
---|---|---|---|---|---|
Product A | Product B | Product C | |||
Activity 1 | $ 81,000 | Square feet | 7,100 | 10,100 | 21,100 |
Activity 2 | $ 56,000 | Units inspected | 8,100 | 16,100 | 9,100 |
Activity 3 | $ 104,000 | Setups | 3,600 | 2,100 | 2,725 |
How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.)
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