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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 activity cost pools are shown in the following table:
Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 72,000 6,200 9,200 20,200 Activity 2 $ 47,000 7,200 15,200 8,200 Activity 3 $ 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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