Solution-How much overhead was allocated to product b

How much overhead was allocated to product b

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Reference no: EM132990393

Question - X Company uses an activity-based costing overhead allocation system. It has identified three activities and three cost drivers. The activities and budgeted costs are as follows:

Activity Budgeted Cost

Material Handling $115,000

Product Testing 50,000

Machine Maintenance 59,000

Total $224,000

The following cost driver information is available for the company's only two products, A and B:

Cost Driver Product A Product B Total

pounds of material 19,300 49,900 69,200

tests 29,800 39,400 69,200

machine hours 68,900 27,400 96,300

How much overhead was allocated to Product B [round overhead rate(s) to two decimal places]?

Reference no: EM132990393

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How much overhead was allocated to product b

Reference no: EM132990393

Reference no: EM132990393

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