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	Activity Measure	Estimated Overhead Cost				Expected Activity
Labour related	Direct labour-hours	$	119,000				28,000	DLHs
Production orders	Number of orders		47,250				1,050	orders
Materials receipts	Number of receipts		82,500				1,100	receipts
Relay assembly	Number of relays		108,000				4,500	relays
General factory	Machine-hours		332,500				47,500	MHs
		$	689,250

Required:

1. Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. (Round your answers to 2 decimal places.)

2. During the year, actual overhead cost and activity were recorded as follows:

Activity Cost Pool	Actual Overhead Cost				Actual Activity
Labour related	$	123,800			30,000	DLHs
Production orders		45,000			1,000	orders
Materials receipts		86,500			1,250	receipts
Relay assembly		105,600			4,400	relays
General factory		335,150			48,450	MHs
Total overhead cost	$	696,050

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. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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 companys manufacturing overhead T-account. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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:

Activity Cost Pool	Actual Activity		Product A	Product B	Product C	Product D
Labour related	30,000	DLHs	7,700	10,600	3,000	8,700
Production orders	1,000	orders	230	285	185	300
Materials receipts	1,250	receipts	95	445	230	480
Relay assembly	4,400	relays	1,650	0	2,750	0
General factory	48,450	MHs	10,300	14,300	11,100	12,750

a. Determine the total amount of overhead cost applied to each product. (Do not round intermediate calculations.)

b. Does the total amount of overhead cost applied to the products above tie in to the T-accounts in any way?

multiple choice

Yes

No