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 2020 were as follows:
cost pool 1 cost pool 2 cost pool 3
budgeted costs $109,000 $52,000 $32,000
cost drivers -- -- --
product A 86,000 63,500 65,100
product B 75,800 50,200 51,600
What will the allocation to Product A be? [round overhead rate(s) to two decimal places].
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