FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 of each of the company's free activity cost pools are shown in the
following table.
Activity cost Budgeted
Budgeted activity - Budgeted activity - Budgeted activity -
pool
cost
Project A
Activity 1
$70,000
6,000
Activity 2
$45,000
7,000
Activity 3
$82,000
2,500
Project B
9,000
15,000
1,000
Project C
20,000
8,000
1,625
How much overhead will be assigned to Product B using activity-based costing?
O $56,500
O $78,000
O $62,500
O $197,000
O $70,000
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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 of each of the company's free activity cost pools are shown in the following table. Activity cost Budgeted Budgeted activity - Budgeted activity - Budgeted activity - pool cost Project A Activity 1 $70,000 6,000 Activity 2 $45,000 7,000 Activity 3 $82,000 2,500 Project B 9,000 15,000 1,000 Project C 20,000 8,000 1,625 How much overhead will be assigned to Product B using activity-based costing? O $56,500 O $78,000 O $62,500 O $197,000 O $70,000
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