EXERCISE 4–5 Assigning Overhead to Products in ABC LO4–2, LO4–3 Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:

Required:

1. Compute the activity rate for each of the activity cost pools.

2. The expected activity for the year was distributed among the company’s four products as follows:

Labor-related

(DLHs)

Purchase orders

(orders)

Parts management

(part types)

Board etching

(boards)

General factory

(MHs)

Expected Activity Activity Cost Pool Product A

Product B

Product C

Product D

6,000 11,000 4,000 5,000 60 30 40 90 30 15 40 15 500 900 600 0 3,000 8,000 3,000 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product.