Question

7. Prohoff 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: Activity A Activity B Activity C Estimated Overhead Cost $117,312 $120,096 $260,648 Expected Activity 2,400 4,800 4,400 Actual costs and activities for the current year were as follows: Actual Overhead Cost $116,952 $119,596 $260,468 Activity A Activity B Activity C Actual Activity 2,370 4,830 4,450 The total debits to the Manufacturing Overhead account during the year were closest to: a. $488,056 b. $497,016 c. $500,668 d. $502,220 8. Siva 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.

Answer 1

7)	Total debits to manufacturing overhead account
	ActivityA		116,952
	ActivityB		119,596
	ActivityC		260468
	total debits		497,016
	answer)	option b
8)	total amount of credits
	ActivityA	58,656/2400*2,370=			57923
	ActivityB	60,048/4800*4830=			60423
	ActivityC	130,324/4400*4450=			131805
	total credits				250151
	answer)	option c
		250,155
	in manufacturing overhead account debits is for actual overhead
	and credits is for applied overhead