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 |
$270,750 |
11,500 |
14,500 |
31,000 |
| Activity 2 |
$221,000 |
12,500 |
26,000 |
13,500 |
| Activity 3 |
$157,500 |
3,600 |
2,100 |
2,700 |
|
How much overhead will be assigned to Product B using activity-based costing?
|
|
$218,750 |
|
$255,250 |
|
$175,250 |
|
$649,250 |
|
$270,750
|