A company has two products: AA and BB. It uses a plantwide overhead allocation method based on activity 33 and has prepared the following analysis showing budgeted costs and activities. Use this information to compute the company's plantwide overhead rate.Activity Cost PoolBudgeted Overhead CostBudgeted Activity??Product AAProduct BBTotalActivity 11$40,000100 400 500Activity 22$55,000500250750Activity 33$90,0003001,7002,000???Total budgeted overhead$185,000?
What will be an ideal response?
$185,000/2,000 units of activity 33 = $92.50 per unit of activity 33
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