Question

Question 14 

Barnes Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: 

Estimated annual overhead cost  $3,000,000 

Actual annual overhead cost       $2,970,000 

Estimated machine hours           300,000

Actual machine hours  295,000 

1) $2,950,000 applied and $20,000 overapplied 

2) $3,000,000 applied and $20,000 overapplied 

3) $2,950,000 applied and $20,000 underapplied 

4) $2.970,000 applied and neither under- nor overapplied

Question 21 

Activity-based costing uses 

1) one plantwide pool and a single cost driver. 

2) departmental pools and a single cost driver. 

3) numerous cost pools and numerous cost drivers. 

4) one plantwide pool and numerous cost drivers

Answer 1

Q.14. 3)$2,950,000 applied and $20,000 underapllied.

Q.21. 3) numerous cost pools and numerous cost drivers.

Explanation:- Activity-based costing(ABC) is a method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.