Problem - A manufacturer produces three products: A, B, and C.
The company uses the following to determine activity rates for each period:
Cost pool Costs Total Activity
Pool 1 $300000 20000 hours
Pool 2 $20000 500 pounds
Pool 3 $10000 100 moves
Total $330000
Data concerning the three products appear below:
Cost Driver Products A Products B Products C
Number of hours 10000 7500 2500
Number of pounds 150 250 100
Number of moves 20 50 50
What is the total amount of overhear applied to product A?
265,000
125500
150000
158000