Question

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:__________.
a. $248,508.
b. $248,988.
c. $250,334.
d. $251,110.

Answer 1

a. $248,508.

Step-by-step explanation:

The calculation of the total amount of the debits to the manufacturing overhead during the year is given below:

Total Amount of Debits should be

= Actual Overhead Cost

= $59,898 + $58,476 + $130,324

= $248,508

Hence, the total amount of the debits to the manufacturing overhead during the year is $248,508

Therefore the correct option is a.