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Question - A manufacturer produces three products: A, B, and C.
The company uses the following information to determine activity rates for each pool:
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 per hour
Pool 2
$20,000
500 per pound
Pool 3
$10,000
100 per move
Total
$330,000
Data concerning the three products appear below:
Cost Driver
Products A
Products B
Products C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
30
50
Required - What is the total amount of overhead applied to product A?
a. $125,500
b. $150,000
c. $158,000
d. $265,000
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