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Flex Company uses ABC to determine the costs of its products. The estimated total cost and expected activity for each of the company's three activity
Flex Company uses ABC to determine the costs of its products. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
Expected Activity | ||||||||
Activity Cost Pools | Estimated Costs | Product A | Product B | Total | ||||
Receiving materials | $76,600 | 900 | 650 | 1,550 | ||||
Inspecting goods | 68,600 | 3,750 | 2,800 | 6,550 | ||||
Shipping goods | 27,500 | 875 | 720 | 1,595 |
Required:
Calculate the overhead that should be assigned to Product A and Product B. Round your answers to the nearest cent.
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