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Question:7.9 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity of each of the company's free activity cost pools are shown in the following table. Activity cost Budgeted pool cost Activity 1 $70,000 Budgeted activity Project A 6,000 Activity 2 $45,000 Activity 3 $82,000 7,000 2,500 - Budgeted activity Project B 9,000 Budgeted activity Project C 20,000 15,000 1,000 8,000 1,625 How much overhead will be assigned to Product B using activity-based costing?

Question:7.9 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity of each of the company's free activity cost pools are shown in the following table. Activity cost Budgeted pool cost Activity 1 $70,000 Budgeted activity Project A 6,000 Activity 2 $45,000 Activity 3 $82,000 7,000 2,500 - Budgeted activity Project B 9,000 Budgeted activity Project C 20,000 15,000 1,000 8,000 1,625 How much overhead will be assigned to Product B using activity-based costing?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question:7.9 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity of each of the company's free activity cost pools are shown in the following table. Activity cost Budgeted pool cost Activity 1 $70,000 Budgeted activity Project A 6,000 Activity 2 $45,000 Activity 3 $82,000 7,000 2,500 - Budgeted activity Project B 9,000 Budgeted activity Project C 20,000 15,000 1,000 8,000 1,625 How much overhead will be assigned to Product B using activity-based costing?
Transcribed Image Text:Question:7.9 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity of each of the company's free activity cost pools are shown in the following table. Activity cost Budgeted pool cost Activity 1 $70,000 Budgeted activity Project A 6,000 Activity 2 $45,000 Activity 3 $82,000 7,000 2,500 - Budgeted activity Project B 9,000 Budgeted activity Project C 20,000 15,000 1,000 8,000 1,625 How much overhead will be assigned to Product B using activity-based costing?
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