14. Manning Business Exchange uses activity-based costing to compute product cos
ID: 2566258 • Letter: 1
Question
14. Manning Business Exchange uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools:
Estimated Expected
Overhead Cost Activity
Meeting Planning $ 60,048 4,800
Social Planning $ 58,656 2,400
Miscellaneous $130,324 4,400
Actual costs and activities for the current year were as follows:
Actual Actual
Overhead Cost Activity
Meeting planning $ 59,798 4,830
Social planning $ 58,476 2,370
Miscellaneous $130,234 4,450
The total amount of the debits (charges) to the Manufacturing Overhead account (hint: refer back to chapter 5, if necessary) during the year was (rounded to whole dollars) how much?
Explanation / Answer
Cost Activities Activities Rate Meeting Planning 60048 4800 12.51 Social Planning 58656 2400 24.44 Miscellaneous 130324 4400 29.62 Actual Actvities Activities Rate Cost Meeting Planning 4830 12.51 60423 Social Planning 2370 24.44 57923 Miscellaneous 4450 29.62 131805 Total Overhead Applied Cr 250151 Meeting Planning 59798 Social Planning 58476 Miscellaneous 130234 Actual Incured DR 248508 Ovehead over applied 250151-248508 1643.00 So Total Amount Debited 248508+1643 250151.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.