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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: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $86,000 $61,000 $114,000 Budgeted Activity Product A Product B 7,600 10,600 8,600 16,600 4,100 2,600 Product CL 21,600 9,600 3,225 How much overhead will be assigned to Product B using activity-based costing? $86,000.00 $81,866.20 $100,543.77 $261,000.00 $76,190.90
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