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Kelly 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
Kelly 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 Expected Costs Activity
Activity 1 $10,152 800Activity 2 $20,394 2,200Activity 3 $34,880 1,000
Actual activity for the current year was as follows:
Actual Activity
Activity 1 805Activity 2 2,180Activity 3 1,015
The amount of overhead applied for Activity 3 during the year was closest to:a. | $16,601.85 | |
b. | $34,880.00 | |
c. | $34,810.00 | |
d. | $35,403.20 |
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