Hunter Corporation uses ABC to determine product costs for external financial reports. At the beginning of the year, management made the following cost and activity estimates in the company's five activity cost pools: Activity Cost Pool Labour related Activity Measure Estimated Overhead Cost Expected Activity Direct labour-hours $ 337,500 45,000 DLHS Production orders Number of orders 101,250 1,125 orders Materials receipts Number of receipts 216,000 1,800 receipts Relay assembly Number of relays 410,400 12,000 relays General factory Machine-hours 1,440,000 90,000 MHs $2,505,150 Required: 1. Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. 2. During the year, actual overhead cost and activity were recorded as follows: Activity Cost Pool Labour related Production orders Materials receipts Relay assembly General factory Total overhead cost Actual Overhead Cost $ 318,500 Actual Activity 48,000 DLHS 107,000 1,050 orders 225,000 1,950 receipts 410,400 11,850 relays 1,470,500 91,500 MHS $2,531,400 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 process for the year. Post the entry to the company's manufacturing overhead T-account. 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 in the table below. a. Determine the total amount of overhead cost applied to each product. Page 216 b. Does the total amount of overhead cost applied to the products above tie in to the T-accounts in any way? Explain your answer. Activity Cost Pool Actual Activity Product A Product B Product C Product D Labour related 48,000 DLHs 12,000 16,500 6,000 13,500 Production orders 1,050 orders 240 300 195 315 Materials receipts 1,950 receipts 150 690 360 750 Relay assembly 11,850 relays 4,050 -0- 7,800 -0- General factory 91,500 MHs 19,500 27,000 21,000 24,000