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X Company uses an activity-based costing overhead allocation system. It has identified three activities and three cost drivers. The activities and budgeted costs are as
X Company uses an activity-based costing overhead allocation system. It has identified three activities and three cost drivers. The activities and budgeted costs are as follows: Activity Budgeted Cost $112,000 56,000 Material Handling Product Testing Machine Maintenance Total 56,000 $224,000 The following cost driver information is available for the company's only two products, A and B: Cost Driver pounds of material tests Product A 30,000 51,300 64,800 Product B 63,300 42,500 45,800 machine hours How much overhead was allocated to Product A (round overhead rates to two decimal places)? A: $79,100 B: $85,800 C: $99,828 D: $107,000 E: $114,000 F: $128,000
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