Question

QUESTION 3 Wenmoth Corporation uses activity-based costing to determine product costs for external financial reports. Activity rates computed at the beginning of the year are used to apply manufacturing overhead costs to products. The company has provided the following data concerning its activity-based costing system. The data used to develop activity rates were: The actual total manufacturing overhead cost incurred for the year was $2,148,800. Reference: 3-7 The credits to the Manufacturing Overhead control account during the year (prior to closing out the balance) would have totaled: A. $2,123,800 B. $2,148,800 C. $2,134,600 D. $2,120,400

Answer 1

D. $2,120,400

Step-by-step explanation:

Answer is option D 2.120.400

Credits to manufacturing overhead account refers to manufacturing overhead applied. Here manufacturing overhead is calculated using activity based costing

Machine related = 18000*256500/19000=243000

Batch set up= 26000*1549600/26000= 1549600

General factory = 11000*327800/11000=327800

Total = 2120400