1) What total overhead cost is allocated/assigned to Product A under activity-based costing?

A) \$92,000

B) \$316,000

C) \$408,000

D) \$500,000

2) What is the overhead cost per unit of Product A under activity-based costing?

A) \$8

B) \$26

C) \$34

D) \$42

Please explain each step clearly. I would like to know where you got the numbers from and which formula (if any) you used. Thank you!

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools. Annual production and sales level of Product A is 12,000 units and the annual production and sales level of Product B is 11,500 units. Budgeted Activity Activity Cost Pool Budgeted Cost \$80,000 Product A Product B Product C Activity 1 400 100 500 \$60,000 Activity 2 250 500 750 Activity 3 \$360,000 2700 300 3000. .

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