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 activities are shown in the following table: Activity Activity 1 Activity 2 Activity 3 Select one: O a. $83,708.19 O b. $65,450.72 Budgeted Cost $ 74,000 $ 49,000 $ 90,000 Oo. $213,000.00 Od. $74,000.00 Oe. $63.322.32 Activity Cost Driver Square feet Units inspected Setups Product A 6,400 7,400 2,900 Budgeted Activity Product B 9,400 15,400 1,400 How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.) Product C 20,400 8,400 2,025

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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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 activities are shown in the following table:
Activity
Activity 1
Activity 2
Activity 3
Budgeted Cost
$ 74,000
$ 49,000
$ 90,000
Select one:
O a. $83,708.19
O b. $65,450.72
Oo. $213,000.00
O d. $74,000.00
Oe. $63,322.32
Activity Cost Driver
Square feet
Units inspected
Setups
Budgeted Activity
Product B
Product A
6,400
7,400
2,900
9,400
15,400
1,400
Product C
20,400
8,400
2,025
How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to
2 decimal places.)
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 activities are shown in the following table: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost $ 74,000 $ 49,000 $ 90,000 Select one: O a. $83,708.19 O b. $65,450.72 Oo. $213,000.00 O d. $74,000.00 Oe. $63,322.32 Activity Cost Driver Square feet Units inspected Setups Budgeted Activity Product B Product A 6,400 7,400 2,900 9,400 15,400 1,400 Product C 20,400 8,400 2,025 How much overhead will be assigned to Product B using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.)
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