Slyvan Company - Activity Based Costing

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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

   

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
Labor related	Direct labor-hours		$	280,000		40,000	DLHs
Purchase orders	Number of orders		$	90,000		1,500	orders
Parts management	Number of part types		$	120,000		400	part types
Board etching	Number of boards		$	360,000		2,000	boards
General factory	Machine-hours		$	400,000		80,000	MHs

Activities during the year were distributed across the company's four products as follows:

 

	Actual Activity
Activity Cost Pool	Product A	Product B	Product C	Product D
Labor related (DLHs)	5,200	2,500	4,000	5,600
Purchase orders (orders)	60	27	16	95
Parts management (part types)	25	21	35	11
Board etching (boards)	420	980	435	1
General factory (MHs)	3,100	7,800	5,400	5,700

Required:

Compute the amount of overhead cost applied to each product during the year. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

 

	Applied Overhead
Activity Cost Pool	Product A	Product B	Product C	Product D
Labor related (DLHs)	$	$	$	$
Purchase orders (orders)
Parts management (part types)
Board etching (boards)
General factory (MHs)
Total	$	$	$	$

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Worksheet

Difficulty: Basic

Learning Objective: 03-3