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) 2387000

1. What does entry (a) represent?

multiple choice

• Overhead applied
• Machine-hours
• Actual manufacturing overhead cost incurred

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 measures	estimated overhead cost	expected activity
labour related	direct labour hours	585000	39,000	DLHs
purchase orders	number of orders	51340	1,510	orders
parts management	number of parts types	362000	403	part types
board etching	number of boards	450000	2000	boards
general factory	machine hours	661510	79700	MHs

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

3. During the year, actual activity was recorded as follows:

Activity Cost Pool actual activity

labour related 39700 DLHs

purchase orders 1280 orders

parts management 416 part types

board etching 2170 boards

general factory 82800 MHs

Determine the amount of manufacturing overhead cost applied to production for the year. (Round intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount.)

4. Determine the amount of underapplied or overapplied overhead cost for the year. (Round intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount.)