ge 262 EXERCISE 5-3 Computing Activity Rates and Assigning Activity Costs [LO2- CC6,7; Chapter 4 L07 - CC18] Help Me Solve It Tutorial: Exercise 5-3 Click here for the transcript 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: Manufacturing Overhead (a) 2,402,000 Required: 1. What does entry (a) represent? 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 Activity Measure Estimated Overhead Cost Expected Activity Labour related Direct labour-hours $560,000 40,000 DLHS Purchase orders Number of orders 45,000 1,500 orders Parts management Number of part types 360,000 400 part types Board etching Number of boards 450,000 2,000 boards General factory Machine-hours 600,000 80,000 MHs Compute the activity rate (.e., predetermined overhead rate) for each of the activity cost pools. 3. During the year, actual activity was recorded as follows: Activity Cost Pool Actual Activity Labour related 41,000 DLHS Purchase orders 1,300 orders Parts management 420 part types Board etching 2,150 boards General factory 82,000 MHs Determine the amount of manufacturing overhead cost applied to production for the year. 4. Determine the amount of underapplied or overapplied overhead cost for the year