39. Company XYZ is using activity-based costing for its two products: Products B & D. One of the activity cost pools is parts administration. The total estimated overhead cost for that pool was ₹5,50,000 and the expe

CS Executive · Cost and Management Accounting · PYQS · June 2021
39. Company XYZ is using activity-based costing for its two products: Products B & D. One of the activity cost pools is parts administration. The total estimated overhead cost for that pool was ₹5,50,000 and the expected activity was 2,000 part types. If product D requires 1,200 part types, the amount of overhead allocated to product D, would be :
(A) ₹2,75,000
(B) ₹3,00,000
(C) ₹3,30,000
(D) ₹3,45,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Activity Based Costing (ABC)

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