Question

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 Pool Budgeted Cost Product A Product B Product C
Activity 1 $ 76,000​ 6600​ 9600​ 20,600​
Activity 2 $ 51,000​ 7600​ 15,600​ 8600​
Activity 3 $ 94,000​ 3100​ 1600​ 2225​
How much overhead will be assigned to Product B using activity-based costing?
a. $66,563.37
b. $221,000.00
c. $67,098.29
d. $86,538.10
e. $76,000.00

Answer 1

Answer:
Activity 1 $ 4.726
Activity 2 $ 3.600
Activity 3 $ 5.291
Explanation:

The goal would be to add each activity to get the total, and then calcualte the rate:

A 140,000/29,625
B 90,000/25,000
C 82,000/15,500