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Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other.Dilly Farm Supply is located in a small town in the rural west. Data regarding the stores operations follow: 16 • Sales are

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Answer #1

Cost Allocated = Equipment Depreciation*Ratio + Supervisory Expense*Ratio

= 87000*0.3 + 9400*0.2

= $27,980

Cash Receipts for December = 248000*40% + 288000*60%

= $272,000

Cash Disbursement = 248000*75% + 288000*75%*70% - 248000*75%*70% +17500

= $224,500

Hence, difference = $47,500

Note: Purchases of November will be paid in December

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