A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost PoolBudgeted Cost Product AProduct B Product C Activity 1 85,000 7,500 10,500 21,500 Activity 2 60,000 8,500 16,500 9,500 Activity 3 112,000 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company uses activity-based costing to determine the costs of its three products: A, B,
and C. The budgeted cost and activity for each of the company's three activity cost
pools are shown in the following table:
Budgeted Activity
Activity Cost PoolBudgeted Cost Product AProduct BProduct
Activity 1
7,500
10,500
21,500
Activity 2
8,500
16,500
9,500
Activity 3
4,000 2,500
3,125
How much overhead will be assigned to Product B using activity-based costing?
85,000
60,000
112,000
Transcribed Image Text:A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost PoolBudgeted Cost Product AProduct BProduct Activity 1 7,500 10,500 21,500 Activity 2 8,500 16,500 9,500 Activity 3 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing? 85,000 60,000 112,000
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