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:

How much overhead will be assigned to Product B using activity-based costing?
A) $56,500
B) $78,000
C) $62,500
D) $197,000
E) $70,000

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:

How much overhead will be assigned to Product B using activity-based costing?

How much overhead will be assigned to Product B using activity-based costing?
A) $56,500 
B) $78,000 
C) $62,500 
D) $197,000 
E) $70,000

Quizplus · Accepted Answer

(9,000)($2.00) + (15,000)($1.50) + (1,000)($16.00) = $56,500

A Company Uses Activity-Based Costing to Determine the Costs of Its