Question

A of the VINYL ed Activity ingin determine the of th e YOUR WORK B Budgeted Product $140,000 S54.000 $28.000 15.000 Activity C Product Pro 6 000 Activity Activity 2 Activity 3 2000 25.000 30D Compute the company's activity rules under activity-based costing for each of the the activities 5) A company uses activity-based costing to determine the cost of its three products. A. Band C. The activity rates and activity levels for each of the company's three activity cost pools are shown in the following table: (12 points) SHOW YOUR WORK! Budgeted Activity Activity Cost Activity Rate Pool Product Product Product B 3.500 1.000 500 Activity I 2.100 600 300 Activity 2 $51 200 1,400 400 Activity 3 $73 Compute the company's budgeted overhead cost for each of the three products under activity-based costing.

Answer 1

Statement showing Computations
Activity cost pool	Budgeted Cost = a	Product A	Product B	Product C	Total Budgeted Activity = b	Activity Rate = a/b
Activity 1	140,000.00	7,500.00	4,000.00	6,000.00	17,500.00	8.00
Activity 2	54,000.00	2,500.00	2,000.00	1,500.00	6,000.00	9.00
Activity 3	28,000.00	15,000.00	25,000.00	30,000.00	70,000.00	0.40
5)
Activity cost pool	Activity Rate	Product A	Budgeted Overhead cost - Product A	Product B	Budgeted Overhead cost - Product B	Product C	Budgeted Overhead cost - Product C
Activity 1	48.00	3,500.00	168,000.00	1,000.00	48,000.00	500.00	24,000.00
Activity 2	51.00	300.00	15,300.00	2,100.00	107,100.00	600.00	30,600.00
Activity 3	73.00	400.00	29,200.00	200.00	14,600.00	1,400.00	102,200.00
Total Budgeted Cost			212,500.00		169,700.00		156,800.00