Question
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
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)2,300,000
At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:
Activity Cost PoolActivity MeasureEstimated
Overhead CostExpected
ActivityLabour relatedDirect labour-hours$462,00042,000DLHsPurchase ordersNumber of orders36,5001,825ordersParts managementNumber of part types417,000500part typesBoard etchingNumber of boards516,2002,225boardsGeneral factoryMachine-hours793,25083,500MHs
The activities during the year were distributed across the company's four products as follows:
Activity Cost PoolActual ActivityProduct AProduct BProduct CProduct DLabour related43,000DLHs14,0008,00011,00010,000Purchase orders1,625orders115450410650Parts management520part types95140135150Board etching2,325boards4751,050550250General factory85,500MHs24,50021,00021,00019,000
Required:Compute the amount of overhead cost applied to each product during the year.(Do not round intermediate calculations.)
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)2,300,000
At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:
Activity Cost PoolActivity MeasureEstimated
Overhead CostExpected
ActivityLabour relatedDirect labour-hours$462,00042,000DLHsPurchase ordersNumber of orders36,5001,825ordersParts managementNumber of part types417,000500part typesBoard etchingNumber of boards516,2002,225boardsGeneral factoryMachine-hours793,25083,500MHs
The activities during the year were distributed across the company's four products as follows:
Activity Cost PoolActual ActivityProduct AProduct BProduct CProduct DLabour related43,000DLHs14,0008,00011,00010,000Purchase orders1,625orders115450410650Parts management520part types95140135150Board etching2,325boards4751,050550250General factory85,500MHs24,50021,00021,00019,000
Required:Compute the amount of overhead cost applied to each product during the year.(Do not round intermediate calculations.)
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