Windsor Company uses activity-based costing to determine product costs. 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)	2,318,000

Required:

1. What does entry (a) represent?

multiple choice

• Actual manufacturing overhead cost incurred

• Overhead applied

• Machine-hours

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 Measure	Estimated Overhead Cost			Expected Activity
Labour related	Direct labour-hours	$	592,000		37,000	DLHs
Purchase orders	Number of orders		38,740		1,490	orders
Parts management	Number of part types		363,000		397	part types
Board etching	Number of boards		448,000		1,970	boards
General factory	Machine-hours		678,720		80,800	MHs

Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. (Note: 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	40,000	DLHs
Purchase orders	1,280	orders
Parts management	419	part types
Board etching	2,130	boards
General factory	82,000	MHs

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