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X Company is considering switching to an activity-based costing allocation system. It has identified several activities; the following budgeted costs and cost drivers are for
X Company is considering switching to an activity-based costing allocation system. It has identified several activities; the following budgeted costs and cost drivers are for three of these activities in 2017:
Activity | Budgeted cost | Cost driver |
Purchasing | $45,600 | 4,100 purchase orders |
Assembly | $114,000 | 97,200 parts |
Packaging | $68,400 | 14,300 finished units |
In 2017, 741 units of Product C were finished, requiring 1,047 parts and 36 purchase orders. If X Company had used the activity-based costing system, how much of these activity costs would have been allocated to product C [round overhead rate(s) to two decimal places]?
A: $3,169 | B: $3,581 | C: $4,047 | D: $4,573 | E: $5,167 | F: $5,839 |
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