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Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool   Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1    $42,000 100 200 300 Activity 2  $10,000 20 5 25 Activity 3  $48,000 3,000 3,000 6,000 Compute total overhead costs allocated to Product A:   $54,000   $14,000   $24,000   $46,000

Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool   Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1    $42,000 100 200 300 Activity 2  $10,000 20 5 25 Activity 3  $48,000 3,000 3,000 6,000 Compute total overhead costs allocated to Product A:   $54,000   $14,000   $24,000   $46,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the following information to answer questions 19-20.

Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below:

Cost Pool   Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1    $42,000 100 200 300 Activity 2  $10,000 20 5 25 Activity 3  $48,000 3,000 3,000 6,000

Compute total overhead costs allocated to Product A:

 

  • $54,000

     

  • $14,000

     

  • $24,000

     

  • $46,000

 

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