Three Products

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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 $373,750 13,500 16,500 35,000
Activity 2 $315,000 14,500 30,000 15,500
Activity 3 $189,600 4,000 2,500 3,100

How much overhead will be assigned to Product B using activity-based costing?