Frankton Company records incoming materials at invoice price less cash discounts plus applied receiving and handling cost. For product Gamma, the following data are available:

The purchasing budget shown estimated net purchases of $144,000 for the month. Actual invoices net of discounts total $148,500 for the month.
Required:
(1) Determine the applied acquisition costing rate for the month.
(2) Determine the amount of applied cost added to materials purchased during the month.
(3) State the accounting treatment of the difference between actual and applied acquisition costs for the period.

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Budgeted for the Month Actual Cost for the Month $ 2,500 4,800 3,900 4,200 Testing, spoilage, and rejects..2,600 $18,000 Freight-in and cartage-in. Purchasing Department cost Receiving Department cost.. Storage and handling.. 2,580 4,500 4,200 3,800 3,120 $18,200 Total