The homogeneous cost pools and the choice of cost-allocation ...

[piesebel]

The homogeneous cost pools and the choice of cost-allocation bases give managers greater confidence in the activity and product cost numbers from single indirect-cost pool systems.
 
  Indicate whether this statement is true or false.

Question 2

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much. a) The adjustment for unearned fees of 3,260 was journalized as a debit to Accounts Payable for 3,260 and a credit to Fees Earned of 3,260. b) The adjustment for supplies expense of 425 was journalized as a debit to Supplies Expense for 542 and a credit to Supplies for 425.

[amcvicar]

Answer to Question 1

Answer: FALSE

Answer to Question 2

a) The trial balance totals will still be equal, but the balances of Unearned Fees and Accounts Payable will be incorrect as the debit should have been made to Unearned Fees instead of Accounts Payable.
b) The debit total exceeds the credit total by 117.