How much overhead cost will be assigned to each product line using activity-based costing (ABC) ?

A) Dog food: $462,500; cat food: $462,500.
B) Dog food: $860,000; cat food: $65,000.
C) Dog food: $60,000; cat food: $45,000.
D) Dog food: $800,000; cat food: $20,000.
E) Dog food: $320; cat food: $320.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on the activities they require.

Overhead Cost

The ongoing expenses of operating a business that are not directly tied to the production of goods or services, such as rent and utilities.

Product Line

A group of related products under a single brand sold by the same company.