Question

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: Estimated Overhead Cost Expected Activity Activity Cost Pools Machine related (m achine-hours) Batch setup (setups) General factory (direct labor-hours S256,500 19,000 MHs S1,549,600 26,000 setups $327,800 11,000 DLHs The actual activity for the year was: Actual Activity for the Year Total ProductXProduct Y 18,000 26,000 14,000 Activity Cost Pools Machine related (m achine-hours Batch setup (setups) General factory (direct labor-hours). 16,000 12,000 9,000 2,000 ...11,000 2,000 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. $2,134,600
B. $2,123,800
C. $2,120,400
D.$2,148,800

Answer 1

Total = 2120400

so correct option is C. $2,120,400

Step-by-step explanation:

solution

here Credit to manufacturing overhead account refer to manufacturing overhead applied is

so manufacturing overhead is find here by using activity based costing

so

Machine related = 18000 ×
`(256500)/(19000)`

Machine related = 243000

and

Batch set up is = 26000 ×
`(1549600)/(26000)`

Batch set up is 1549600

so here

General factory = 11000×
`(327800)/(11000)`

General factory = 327800

so total will be here

Total = 2120400

so correct option is C. $2,120,400