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TB MC Qu. 17-132 (Algo) A company uses activity-based costing to... A company uses activity-based costing to determine the costs of its three products: A,

TB MC Qu. 17-132 (Algo) A company uses activity-based costing to...

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 activities are shown in the following table:

Activity Budgeted Cost Activity Cost Driver Budgeted Activity
Product A Product B Product C
Activity 1 $ 72,000 Square feet 6,200 9,200 20,200
Activity 2 $ 47,000 Units inspected 7,200 15,200 8,200
Activity 3 $ 86,000 Setups 2,700 1,200 1,825

How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.)

Multiple Choice

  • $59,979.35

  • $80,863.55

  • $63,905.36

  • $205,000.00

  • $72,000.00

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