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Question - X Company makes two products, A and B, and uses an activity-based costing overhead allocation system, with three cost pools and three cost drivers. Budgeted costs and driver information for 2017 were as follows:
Cost Pool 1
Cost Pool 2
Cost Pool 3
Budgeted costs
$106,000
$59,000
$27,000
Cost Drivers
Product A
86,000
58,000
70,000
Product B
77,000
53,000
49,000
What was the allocation to Product A in 2017?
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