Suki Company uses activity-based costing to 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 Cost Activity 1 Activity 2 Activity 3 Actual activity for the current year was as follows: Actual Activity Activity 1 Activity 2 Activity 3 $34,300 $20,520 $36,112 O a. $30,026.50 O b. $36,112.00 OC $36,107.00 O d. $35,773.45 1,415 1,805 1,585 0 Expected Activity 1,400 1,800 1,600 The amount of overhead applied for Activity 3 during the year was closest to:

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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Suki 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 Cost
Activity 1
Activity 2
Activity 3
Actual activity for the current year was as follows:
Actual Activity
Activity 1
Activity 2
Activity 3
$34,300
$20,520
$36,112
O a. $30,026.50
O b. $36,112.00
OC. $36,107.00
O d. $35,773.45
1,415
1,805
1,585
0
Expected Activity
1,400
1,800
1,600
The amount of overhead applied for Activity 3 during the year was closest to:
Ø
Transcribed Image Text:Suki 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 Cost Activity 1 Activity 2 Activity 3 Actual activity for the current year was as follows: Actual Activity Activity 1 Activity 2 Activity 3 $34,300 $20,520 $36,112 O a. $30,026.50 O b. $36,112.00 OC. $36,107.00 O d. $35,773.45 1,415 1,805 1,585 0 Expected Activity 1,400 1,800 1,600 The amount of overhead applied for Activity 3 during the year was closest to: Ø
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