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
| Budgeted Activity | ||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C |
| Activity 1 | $164,500 | 9,000 | 12,000 | 26,000 |
| Activity 2 | $126,000 | 10,000 | 21,000 | 11,000 |
| Activity 3 | $120,750 | 3,100 | 1,600 | 2,200 |
| How much overhead will be assigned to Product B using activity-based costing?
|
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Auditing Cases An Interactive Learning Approach
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
7th Edition
0134421825, 9780134421827
