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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 2020 were as follows:
Cost Pool 1 | Cost Pool 2 | Cost Pool 3 | |
Budgeted costs | $109,000 | $54,000 | $29,000 |
Cost Drivers | |||
Product A | 83,200 | 57,000 | 69,700 |
Product B | 77,000 | 50,200 | 50,400 |
What will the allocation to Product B be? [round overhead rate(s) to two decimal places].
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