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X Company makes two products, A and B, and uses an activity-based costing overhead allocation system, with three cost pools and three cost drivers. Budgeted
X Company makes two products, A and B, and uses an activity-based costing overhead allocation system, with three cost pools and three cost drivers. Budgeted costs and driver information for 2015 were as follows:
Cost Pool 1 | Cost Pool 2 | Cost Pool 3 | |
Budgeted costs | $115,000 | $58,000 | $29,000 |
Cost Drivers | |||
Product A | 86,400 | 63,600 | 75,100 |
Product B | 73,100 | 51,900 | 46,000 |
What was the allocation to Product A? [round overhead rates to the nearest cent].
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