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(LO 3) A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for
(LO 3) 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 | $ | 89,000 | 7,900 | 10,900 | 21,900 | |||||||
Activity 2 | $ | 64,000 | 8,900 | 16,900 | 9,900 | |||||||
Activity 3 | $ | 120,000 | 4,400 | 2,900 | 3,525 | |||||||
How much overhead will be assigned to Product B using activity-based costing?
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