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2 10 points Exercise 4-5 (Static) Assigning Overhead to Products in ABC [LO4-2, LO4-3] Sultan Company uses an activity-based costing system. At the beginning
2 10 points Exercise 4-5 (Static) 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: Activity Cost Pool Labor-related Purchase orders Parts management Board etching eBook General factory Expected Overhead Cost $ 156,000 $ 11,000 Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours $ 90,000 $ 180,000 $ 80,000 Expected Activity 26,000 DLHS 220 orders 100 part types 2,000 boards 20,000 MHs Hint References 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: Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A 6,000 Expected Activity Product B Product C Product D 11,000 4,000 5,000 60 30 40 90 30 15 40 15 500 3,000 900 600 0 8,000 3,000 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Parts management Activity Rate per DLH per order Board etching General factory per part type per board per MH
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