Question
In: Accounting
A company uses activity-based costing to determine the costs of its three products: A, B, and...
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:
|
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:
Multiple Choice
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How much overhead will be assigned to Product B using
activity-based costing?
Solutions
Expert Solution
--Correct Answer = Option #1: $ 87,739.66
| Allocated to Product B | |
| Activity 1 | $ 24,146.34 |
| Activity 2 | $ 30,694.44 |
| Activity 3 | $ 32,898.88 |
| Total cost allocated | $ 87,739.66 Answer |
--Working
| Allocated to Product B | |
| Activity 1 | =90000*11000/(8000+11000+22000) |
| Activity 2 | =65000*17000/(9000+17000+10000) |
| Activity 3 | =122000*3000/(4500+3000+3625) |
ekkarill92 answered 1 year agoRelated Solutions
A company uses activity-based costing to determine the costs of its three products: A, B, and...
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:
Budgeted Activity
Activity Cost Pool
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Product B
Product C
Activity 1
$
85,000
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10,500
21,500
Activity 2
$
60,000
8,500
16,500
9,500
Activity 3
$
112,000
4,000
2,500
3,125
How much overhead will be assigned to Product B...
A company uses activity-based costing to determine the costs of its three products: A, B, and...
A company uses activity-based costing to determine the costs of
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each of the company's three activity cost pools are shown in the
following table:
Budgeted Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$
75,000
6,500
9,500
20,500
Activity 2
$
50,000
7,500
15,500
8,500
Activity 3
$
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1,500
2,125
How much overhead will be assigned to Product B...
1.) A company uses activity-based costing to determine the costs of its three products: A, B,...
1.) A company uses activity-based costing to determine the costs
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for each of the company's three activity cost pools are shown in
the following table:
Budgeted Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$
81,000
7,100
10,100
21,100
Activity 2
$
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8,100
16,100
9,100
Activity 3
$
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3,600
2,100
2,725
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2.
A Plus 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:
Budgeted Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$
70,000
6,000
9,000
20,000
Activity 2
$
45,000
7,000
15,000
8,000
Activity 3
$
82,000
2,500
1,000
1,625
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(LO 3) A company uses activity-based costing to determine the costs of its three products: A,...
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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:
Budgeted Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$
89,000
7,900
10,900
21,900
Activity 2
$
64,000
8,900
16,900
9,900
Activity 3
$
120,000
4,400
2,900
3,525
How much overhead will be assigned to...
4. Nationals Inc. uses activity-based costing to determine the costs of its three products: A, B,...
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shown below. (Check: Activity 1 activity rate should be a number
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Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 1
$140,000
7,500
4,000
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A company has two products: A and B. It uses activity-based
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Cost Pool
Budgeted Cost
Product A
Product B
Activity 1
$87,000
3,000
2,800
Activity 2
$62,000
4,500
5,500
Activity 3
$93,000
2,500
5,250
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and the annual production and sales level of Product B is 69,550
Units. What is...
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Assume a company that uses activity-based costing (ABC) has only
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allocated to the three activities shown below:
Setups
Machining
Packing Orders
Activity measure quantity: Product A
20
1,000
150
Activity measure quantity: Product B
20
?
350
Overhead cost per activity cost pool
?
?
$
10,000
Activity rate
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150
per...
Abel Company uses activity-based costing. The company has two products: A and B. The annual production...
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