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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 2,316,000 At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost 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 $ 649,400 34,560 315,700 504,350 570,840 Expected Activity 38,200 DLHS 1,440 orders 385 part types 1,925 boards 80,400 MHS The activities during the year were distributed across the company's four products as follows: Product c. 10,300 300 Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Actual Activity 40,200 DLHS 1,240 orders 395 part types 2,125 boards 81,400 MHS Product A 13,300 80 60 445 23,800 Product B 7,300 330 110 990 19,800 Product D 9,300 530 120 195 17,900 105 495 19,900 Required: Compute the amount of overhead cost applied to each product during the year. (Do not round intermediate calculations.) Applied Overhead Product B Product C Product A Product D Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Total S 0 S S 0 S 0Step by Step Solution
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