A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
|
|
Budgeted Activity |
| Activity Cost Pool |
Budgeted Cost |
Product A |
Product B |
Product C |
| Activity 1 |
$146,250 |
8,500 |
11,500 |
25,000 |
| Activity 2 |
$110,000 |
9,500 |
20,000 |
10,500 |
| Activity 3 |
$113,850 |
3,000 |
1,500 |
2,100 |
How much overhead will be assigned to Product B using activity-based costing?