Barnes Company applies overhead on the basis of machine hours. Given the...

Question 14

Barnes Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost $3,000,000

Actual annual overhead cost $2,970,000

Estimated machine hours 300,000

Actual machine hours 295,000

1) $2,950,000 applied and $20,000 overapplied

2) $3,000,000 applied and $20,000 overapplied

3) $2,950,000 applied and $20,000 underapplied

4) $2.970,000 applied and neither under- nor overapplied

Question 21

Activity-based costing uses

1) one plantwide pool and a single cost driver.

2) departmental pools and a single cost driver.

3) numerous cost pools and numerous cost drivers.

4) one plantwide pool and numerous cost drivers

Solutions

Expert Solution

Q.14. 3)$2,950,000 applied and $20,000 underapllied.

Q.21. 3) numerous cost pools and numerous cost drivers.

Explanation:- Activity-based costing(ABC) is a method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

ekkarill92 answered 2 years ago

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