Draus Products Company 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 overhead expected activity activity#1 $60,048 4800 activity#2 $58,656 2400 activity#3 $130,324 4400 Actual costs and activities for the current year were as follows. actual overhead cost actual activity acrivity#1 $59,798 4830 activity#2 $58,476 2370 activity#3 $130,234 4450 The total amount of overhead applied during the year was closest to: 1. $248,508 2. $248,988 3. $250,155 4. $251,334
Draus Products Company 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 overhead expected activity activity#1 $60,048 4800 activity#2 $58,656 2400 activity#3 $130,324 4400 Actual costs and activities for the current year were as follows. actual overhead cost actual activity acrivity#1 $59,798 4830 activity#2 $58,476 2370 activity#3 $130,234 4450 The total amount of overhead applied during the year was closest to: 1. $248,508 2. $248,988 3. $250,155 4. $251,334
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Draus Products Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies
estimated overhead | expected activity | |
activity#1 | $60,048 | 4800 |
activity#2 | $58,656 | 2400 |
activity#3 | $130,324 | 4400 |
Actual costs and activities for the current year were as follows.
actual overhead cost | actual activity | |
acrivity#1 | $59,798 | 4830 |
activity#2 | $58,476 | 2370 |
activity#3 | $130,234 | 4450 |
The total amount of overhead applied during the year was closest to:
1. $248,508
2. $248,988
3. $250,155
4. $251,334
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