Company X uses activity-based costing for its two products: Product A & B. One of the activity cost pools is parts administration. The total estimated overhead cost for that pool was ₹5,50,000 and the expected activi
CS Executive · Cost and Management Accounting · PYQS · June 2018
Company X uses activity-based costing for its two products: Product A & B. 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 the Product B requires 1,200 part types, the amount of overhead allocated to it would be :
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cost and Management Accounting
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