Sec 1

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:

How much overhead will be assigned to Product B using activity-based costing?

Budgeted Activity Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B Product c $ 90,000 65,000 $122,000 8,000 9,000 4,500 11,000 17,000 3,000 22,000 10,000 3,625 Multiple Choice $90,000.00 $87,739.66 $277,000.00 $106,101.05 $80,042.76