6. (10 points) Cost flows and Unit Product Costs in Activity-Based Costing Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity Labor related...... Direct labor-hours $200,000 20,000 DLHS Production orders.... Number of orders S110,000 5,000 orders Material receipts Number of receipts S108,000 1,800 receipts Relay assembly Number of relays S960,000 12,000 relays General factory Machine-hours $1,260,000 70,000 MHS Required (1). Compute the activity rate (i.c., predetermined overhead rate) for each of the activity cost pools. (2). During the year, actual overhead cost and activity were recorded as follows: Actual Overhead Activity Cost Pool Cost Actual Activity Labor related S 205,000 22,000 DLHS Production orders. 107.000 4,500 orders Material receipts. 112,000 2,000 receipts Relay assembly 980,000 13,000 relays General factory 1.300.000 73,000 MHS Total overhead cost...... $2.704,000 a. Prepare a journal entry to record the incurrence of actual manufacturing overhead cost for the year (credit Accounts Payable). Post the entry to the company's Manufacturing Overhead T-account b. Determine the amount of overhead cost applied to production during the year. c. Prepare a journal entry to record the application of manufacturing overhead cost to Work in account Process for the year. Post the entry to the company's Manufacturing Overhead d. Determine the amount of underapplied or overapplied manufacturing overhead for the year. (3). The actual activity for the year was distributed among the company's four products as follows: Actual Activity Activity Cost Pool Product Product B Product C Product D Labor related (DLHS)....... 7.000 1,000 8,000 6,000 Production orders (orders) .... 900 1,100 1,700 Material receipts (receipts).... 400 800 300 500 Relay assembly (relays). 3,500 2,000 3,000 4,500 General factory (MH)......... 16,000 26,000 17,000 14,000 800 a. Determine the total amount of overhead cost applied to each product. b. Does the total amount of overhead cost applied to the products above tie in to the T-accounts in any way? Explain