Question
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 2017 were as follows:
| Cost Pool 1 | Cost Pool 2 | Cost Pool 3 | |
| Budgeted costs | $113,000 | $58,000 | $26,000 |
| Cost Drivers | |||
| Product A | 78,000 | 62,000 | 73,000 |
| Product B | 67,000 | 54,000 | 55,000 |
What was the allocation to Product B in 2017?
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
