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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

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

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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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
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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