Discuss how the overhead was allocated to product a


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 $109,000
  • Purchasing 56,000
  • Packaging 54,000

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

  • pounds of material $27,800 $66,000
  • purchase orders 54,200 43,900
  • packages 63,700 45,400

How much overhead was allocated to Product A?

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Accounting Basics: Discuss how the overhead was allocated to product a
Reference No:- TGS0704931

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