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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 2,345,000 (a) 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 Labour related Purchase orders Parts management Board etching General factory Activity Measure Direct labour-hours Number of orders Number of part types Number of boards Machine-hours Estimated Overhead Cost $ 745,200 54,120 488,660 650,43 467, 040 Expected Activity 41,400 DLHS 1,640 orders 530 part types 2,190 boards 83,400 MHS The activities during the year were distributed across the company's four products as follows: Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Actual Activity 43,400 DLHS 1,540 orders 540 part types 2,290 boards 84,400 MHs Product A 13,900 130 110 490 24,400 Product B 7,900 430 135 1,020 20,800 Product C 11,300 390 150 540 20,400 Product D 10,300 590 145 240 18,800 Required: Compute the amount of overhead cost applied to each product during the year. (Do not round intermediate calculatic Applied Overhead Product B Product C Product A Product D Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Total
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