Munoz Corporation uses activity based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools:

Required
1. Compute the activity rate (i.e,. predetermined overhead rate) for each of the activity cost pools.
2. During the year, overhead cost and activity were recorded as follows:

a. Prepare ajourni entry to record the incurrence of actual manufacturing overhead cost for the year (credit Accounts Payable). Post the entry to the company's Manufacturing Overhead T account.
b. Determine the amount of overhead cost applied to production during the year.
c. Prepare ajournai entry to record the application of manufacturing overhead cost to work in Process for the year. Post the entry to the company's Manufacturing Overhead T account.
d. Determine the amount of underapplied or overapplied manufacturing overhead for the year.
3. The actual activity for the year was distributed among the company's four products as follows:

a. Determine the total amount of overhead cost applied to each product.
b. Does the total amount of overhead cost applied to the products above tie in to the T accounts in any way? Explain

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Activity EstimatedExpected Activity Cost PoolMeasureO Overhead CostActivity Labor related Direct labor-hours $2,10,000 35,000 DLHs Purchase orders.Number of orders Product testing.Number of tests Template etchingNumber of templates3,15,000 10,500 templates General factoryMachine-hours $ 72,000 900 orders $1,68,000 1,400 tests $8,40,000 70,000 MHs Activity Cost Pool Actual Overhead CostActual Activity Labor related $2,05,000 32,000 DLHs Machine related 74,000950 orders Product testing 1,60,000 1.300 tests Template etching .. 3,38,000 11,500 relays General factory 8,25,00068,000 MHs g overhead cost $1.602,000 Total manufacturin Actual Activity Activity Cost PoolProduct A Product B Product C Product D Labor related (DLHs) 6,000,500,000 8,500 Purchase orders (orders) 150 300 100 400 Product testing (tests) 400 175 225 500 Template etching (boards) 4,500 7,000 General factory (MHs) 10,00020,000 7,000 21,000