X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted...
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Accounting
X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the activities that are used in the ABC system:
Activity
Budgeted cost
Cost driver
Assembly
$79,000
90,400 parts
Packaging
$47,400
14,600 finished units
Purchasing
$31,600
4,700 purchase orders
In May of 2020, 600 units of Product C were finished, requiring $13,300 of direct materials, 4,000 direct labor hours, 1,382 parts, and 49 purchase orders. How much of the three activity costs was allocated to Product C?
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