Homework Answers
Allocation to product A
Cost pool 1 = ($109,000 X 81,700) / (81,700 + 74,200) = $57,190
Cost pool 2 = ($55,000 X 62,800) / (62,800 + 50,900) = $30,144
Cost pool 3 = ($26,000 X 68,800) / (68,800 + 47,000) = $15,136
Total = $57,190 + $30,144 + $15,136
= $102,470
Option B.
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