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X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the
X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the activities that are used in the ABC system:
Activity | Budgeted cost | Cost driver |
Assembly | $79,000 | 89,800 parts |
Packaging | $47,400 | 14,400 finished units |
Purchasing | $31,600 | 4,200 purchase orders |
In May of 2020, 521 units of Product C were finished, requiring $18,400 of direct materials, 4,000 direct labor hours, 1,464 parts, and 38 purchase orders. How much of the three activity costs was allocated to Product C?
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