80.2K

Verified Solution

Link Copied!

Sylvan Company uses activity-based costing to determine product costs for external financial reports. Some of the entries have been completed to the manufacturing overhead account for the current year, as shown by entry (a) below: (a) Manufacturing Overhead 2,395,000 Required: 1. What does entry (a) represent? Actual manufacturing overhead cost incurred Overhead applied Machine-hours 2. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Activity Measure Direct labour-hours Number of orders Number of part types Number of boards Machine-hours Estimated Overhead Cost $598,000 38,740 360,000 448,000 607,500 Expected Activity 46,000 DLHS 1,490 orders 403 part types 2,010 boards 81,000 MHS Compute the activity rate (le, predetermined overhead rate) for each of the activity cost pools (Round your final answers to 1 decimal place.) Compute the activity rate (.e. predetermined overhead rate) for each of the activity cost pools. (Round your final answers to 1 decimal place.) Actual Activity per direct labour-hours per order Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory per part type per board per machine-hours 3. During the year, actual activity was recorded as follows: Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Actual Activity 41,200 DLHS 1,320 orders 421 part types 2,160 boards 82,500 MHS Determine the amount of manufacturing overhead cost applied to production for the year. (Round Intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount.) Activity Cost Pool Applied Overhead Labour related Purchase orders Parts management 4. Determine the amount of underapplied or overapplied overhead cost for the year. (Round intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount.) overhead cost

Answer & Explanation Solved by verified expert

See Answer