Sylvan Company uses activity based costing to determine product costs for external financial reports. The company's partially completed Manufacturing Overhead T account for the current year is shown below:
Manufacturing Overhead
(a) 1,302,000
Required
1. What does the entry (a) above represent?
2. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools;

Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.
3. During the year, actual activity was recorded as follows:

Determine the amount of manufacturing overhead cost applied to production for the year.
4. Determine the amount of underapplied or overapplied overhead cost for the year.

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Activity Cost Poo Activity MeasureEstimated Overhead Cost Expected Activity Labor related Direct labor-hours $2,80,000 40,000 DLHs Purchase ordersNumber of orders $90,000 1,500 orders Parts managementNumber of part types $1,20,000 400 part types Board etchingNumber of boards $3,60,000 2,000 boards General factory Machine-hours $4,00,000 80,000 MHs Activity Cost Pool Actual Activity Labor related 41,000 DLHs Purchase orders 1.300 orders Parts management420 part types Board etching 2,150 boards General factory 82,000 MHs