Estimated Overhead Cost Expected Activity Activity 1 $ 34 , 300 1 , 400 Activity 2 $ 20 , 520 1 , 800 Activity 3 $ 36 , 112 1 , 600 Actual activity for the current year was as follows: Actual Activity Activity 1 1 , 415 Activity 2 1 , 805 Activity 3 1 , 585 \begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } ext { Estimated } \ ext { Overhead } \ ext { Cost }\end{array} & ext { Expected Activity } \\hline ext { Activity 1 } & \$ 34,300 & 1,400 \\hline ext { Activity 2 } & \$ 20,520 & 1,800 \\hline ext { Activity 3 } & \$ 36,112 & 1,600 \\hline\end{array}\ ext { Actual activity for the current year was as follows: }\\begin{array} { | l | l | } \hline & ext { Actual Activity } \\hline ext { Activity 1 } & 1,415 \\hline ext { Activity 2 } & 1,805 \\hline ext { Activity 3 } & 1,585 \\hline\end{array}\end{array} Activity 1 Activity 2 Activity 3 Estimated Overhead Cost $34 , 300 $20 , 520 $36 , 112 Expected Activity 1 , 400 1 , 800 1 , 600 Actual activity for the current year was as follows: Activity 1 Activity 2 Activity 3 Actual Activity 1 , 415 1 , 805 1 , 585 The amount of overhead applied for Activity 3 during the year was closest toA) $36,107.00.B) $30,026.50.C) $36,112.00.D) $35,773.45.

Question

Estimated   Overhead   Cost   Expected Activity   Activity 1  $ 34 , 300 1 , 400  Activity 2  $ 20 , 520 1 , 800  Activity 3  $ 36 , 112 1 , 600  Actual activity for the current year was as follows:   Actual Activity   Activity 1  1 , 415  Activity 2  1 , 805  Activity 3  1 , 585 \begin{array}{l}\begin{array} { | l | l | l | } \hline  &  \begin{array} { l } 	ext { Estimated } \	ext { Overhead } \	ext { Cost }\end{array}  &  	ext { Expected Activity } \\hline 	ext { Activity 1 }  &  \$ 34,300  &  1,400 \\hline 	ext { Activity 2 }  &  \$ 20,520  &  1,800 \\hline 	ext { Activity 3 }  &  \$ 36,112  &  1,600 \\hline\end{array}\	ext { Actual activity for the current year was as follows: }\\begin{array} { | l | l | } \hline  &  	ext { Actual Activity } \\hline 	ext { Activity 1 }  &  1,415 \\hline 	ext { Activity 2 }  &  1,805 \\hline 	ext { Activity 3 }  &  1,585 \\hline\end{array}\end{array}  Activity 1   Activity 2   Activity 3  ​  Estimated   Overhead   Cost  ​ $34 , 300 $20 , 520 $36 , 112 ​  Expected Activity  1 , 400 1 , 800 1 , 600 ​ ​  Actual activity for the current year was as follows:   Activity 1   Activity 2   Activity 3  ​  Actual Activity  1 , 415 1 , 805 1 , 585 ​ ​ ​   The amount of overhead applied for Activity 3 during the year was closest toA) $36,107.00.B) $30,026.50.C) $36,112.00.D) $35,773.45.

Harpreet Sandhu · Accepted Answer

Final Answer : D, Explanation :  To find the amount of overhead applied for Activity 3, we first calculate the overhead rate per unit of activity, then multiply it by the actual activity. The overhead rate per unit for Activity 3 is calculated as follows: $36,112 / 1,600 = $22.57 per unit of activity. The actual activity for Activity 3 is 1,585 units. Therefore, the applied overhead is $22.57 * 1,585 = $35,773.45.

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