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 2017 were as follows:
|
|
Cost Pool 1
|
Cost Pool 2
|
Cost Pool 3
|
|
Budgeted costs
|
$106,000
|
$59,000
|
$27,000
|
|
Cost Drivers
|
|
|
|
|
Product A
|
86,000
|
58,000
|
70,000
|
|
Product B
|
77,000
|
53,000
|
49,000
|
What was the allocation to Product A in 2017?