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Draus Products 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 Cost Expected Activity Activity #1 $60,048 4,800 Activity #2 $58,656 2,400 Activity #3 $130,324 4,400   Actual costs and activities for the current year were as follows.   Actual Overhead Cost Actual  Activity Activity #1 $59,798 4,830 Activity #2 $58,476 2,370 Activity #3 $130,234 4,450   The total amount of the debits to the manufacturing overhead during the year was closest to:     $248,508.     $248,988.     $250,334.     $251,110.

Draus Products 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 Cost Expected Activity Activity #1 $60,048 4,800 Activity #2 $58,656 2,400 Activity #3 $130,324 4,400   Actual costs and activities for the current year were as follows.   Actual Overhead Cost Actual  Activity Activity #1 $59,798 4,830 Activity #2 $58,476 2,370 Activity #3 $130,234 4,450   The total amount of the debits to the manufacturing overhead during the year was closest to:     $248,508.     $248,988.     $250,334.     $251,110.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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  1. Draus Products 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 Cost

    Expected Activity

    Activity #1

    $60,048

    4,800

    Activity #2

    $58,656

    2,400

    Activity #3

    $130,324

    4,400

     

    Actual costs and activities for the current year were as follows.

     

    Actual Overhead Cost

    Actual  Activity

    Activity #1

    $59,798

    4,830

    Activity #2

    $58,476

    2,370

    Activity #3

    $130,234

    4,450

     

    The total amount of the debits to the manufacturing overhead during the year was closest to:

       

    $248,508.
       

    $248,988.
       

    $250,334.
       

    $251,110.
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