X Company makes two products, A and B, and uses an activity-based costing overhe
ID: 2424461 • Letter: X
Question
X Company makes two products, A and B, and uses an activity-based costing overhead allocation system, with three cost pools and three cost drivers. Budgeted costs and driver information for 2015 were as follows:
What was the allocation to Product A? [round overhead rates to the nearest cent].
show your work thanks!
Cost Pool 1 Cost Pool 2 Cost Pool 3 Budgeted costs $108,000 $54,000 $25,000 Cost Drivers Product A 77,200 60,500 68,800 Product B 76,100 52,400 52,800Explanation / Answer
Answer :
Allocation of overheads Product Cost Pool 1 Cost Pool 2 Cost Pool 3 Total A 54387.48 28937.11 14144.74 97469.33 B 53612.52 25062.89 10855.26 89530.67 Total 108000.00 54000.00 25000.00 187000 Cost allocation of cost pool 1 Total of cost driver 153300 Cost for A 54387.48 Cost for B 53612.52 Cost allocation of cost pool 2 Total of cost driver 112900 Cost for A 28937.11 Cost for B 25062.89 Cost allocation of cost pool 3 Total of cost driver 121600 Cost for A 14144.74 Cost for B 10855.26Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.