A Company Has Two Products: a and B

question 3

Essay

A company has two products: A and B.It uses activity-based costing and has prepared the following analysis showing budgeted costs and activities.Use this information to compute (a)the company's overhead rates for each of the three activities and (b)the amount of overhead allocated to Product A.
$\begin{array}{r}\text { Budgeted Activity }\quad\quad\quad\\\begin{array} { | l | c | r | r | r | } \hline & & { } \\ { \text { Activity Cost Pool } } & { \begin{array} { c } \text { Budgeted } \\\text { Overhead Cost }\end{array} } & \text { Product A } & \text { Product B } & { \text { Total } } \\\hline \text { Activity 1 } & \$ 160,000 & 400 & 1,600 & 2,000 \\\hline \text { Activity 2 } & \$ 110,000 & 2,000 & 1,000 & 3,000 \\\hline \text { Activity 3 } & \$ 180,000 & 1,200 & 10,800 & 12,000 \\\hline & & { } \\\hline \begin{array} { l } \text { Total budgeted } \\\text { overhead }\end{array} & \$ 450,000 & { } \\\hline\end{array}\end{array}$

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Definitions:

Serial List

A serial list is a sequence of items organized in a specific order, often used for memorization or organizational purposes.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories, often impacting the learning process.

Long-Term Memory

A type of memory capable of storing large amounts of information for potentially unlimited durations, ranging from minutes to a lifetime.

Decay Theory

A hypothesis in psychology that proposes memory traces begin to fade over time if they are not accessed or used.