Reference: 05-07
Alam Company Uses Activity-Based Costing to Compute Product

question 37

Multiple Choice

Reference: 05-07
Alam 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. Overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year. Estimated costs and activities for the current year are presented below for the three activity cost pools: $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \text { Estimated Overhead Cost } & \text { Expected Activity } \\\hline \text { Activity 1 } & \$ 29,328 & 1,200 \\\hline \text { Activity 2 } & \$ 30,024 & 2,400 \\\hline \text { Activity 3 } & \$ 65,142 & 2,200 \\\hline\end{array}\\\text { Actual costs and activities for the current year were as follows: }\\\begin{array} { | l | l | l | } \hline & \text { Actual Overhead Cost } & \text { Actual Activity } \\\hline \text { Activity 1 } & \$ 29,238 & 1,185 \\\hline \text { Activity 2 } & \$ 29,899 & 2,415 \\\hline \text { Activity 3 } & \$ 65,117 & 2,225 \\\hline\end{array}\end{array}$$
-The total debits to the Manufacturing Overhead account during the year were closest to:

• A)$125,667.
• B)$124,494.
• C)$125,055.
• D)$124,254.

---

Definitions:

Evolutionary Influences

Factors that shape the development and behavior of organisms over generations, driven by natural selection and adaptation.

Selective Mating Choices

Selective mating choices involve choosing partners based on specific criteria or traits, affecting genetic diversity and evolution.

Human Males And Females

Refers to the two primary biological sexes in humans, each with distinct physiological and genetic characteristics.

Evolutionary Tendencies

Refers to patterns or directions of evolutionary change within species over generations, often driven by environmental pressures and genetic variations.