Suki Company Uses Activity-Based Costing to Compute Product Costs for External

question 22

Multiple Choice

Suki 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: Actual activity for the current year was as follows: The amount of overhead applied for Activity 3 during the year was closest to

• A) $30,026.50.
• B) $35,773.45.
• C) $36,107.00.
• D) $36,112.00.

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Definitions:

Revenues and Expenses

The income generated from normal business operations and the costs incurred to generate that income.

Income Statement

A financial statement that shows a company's revenues and expenses, resulting in net income or loss over a specific period.

Balance Sheet

A financial statement that shows a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Statement of Cash Flows

A summary indicating how balance sheet account changes and revenue fluctuations impact cash and equivalents, broken down into the segments of operating, investing, and financing.