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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 $ 85,000 $ 60,000 $112,000 Budgeted Activity Product A Product B Product C 7,500 10,500 21,500 8,500 16,500 9,500 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing? Multiple Choice $80,381.50 $99,151.20 $75,241.11 $257,000.00 $85,000.00
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