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 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:
| Activity cost pool | budgeted cost | product A | product B | product C |
| Activity 1 | 70,000 | 6,000 | 9,000 | 20,000 |
| Activity 2 | 45,000 | 7,000 | 15,000 | 8,000 |
| Activity 3 | 82,000 | 2,500 | 1,000 | 1,625 |
How much overhead will be assigned to product B using activity-based costing?
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The Social Function Of AccountsReforming Accountancy To Serve Mankind
Authors: John Flower
1st Edition
1138645249, 9781138645240
