X Company makes two products, A and B, and uses an activity-based costing overhe

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:

1. What was the allocation to Product A? [round overhead rates to the nearest cent].

I have one more chance left, plz give me correct answer 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     52,800    

Explanation / Answer

Cost Drivers Cost Pool 1 Cost Pool 2 Cost Pool 3   Product A                               54,387                             28,937                             14,145   Product B                               53,613                             25,063                             10,855 Total                             108,000                             54,000                             25,000 Formulae Used Cost Pool 1 Cost Pool 2 Cost Pool 3   Product A (77200/153300)*108000 (60500/112900)*54000 (68800/121000)*25000   Product B (76100/153300)*108000 (52400/112900)*54000 (52800/121000)*25000

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