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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 | $183,750 | 9,500 | 12,500 | 27,000 |
Activity 2 | $143,000 | 10,500 | 22,000 | 11,500 |
Activity 3 | $127,800 | 3,200 | 1,700 | 2,300 |
How much overhead will be assigned to Product B using activity-based costing? |
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