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3 2.14 points eBook Hint Exercise 4-5 (Algo) Assigning Overhead to Products in ABC [LO4-2, LO4-3] Sultan Company uses an activity-based costing system. At
3 2.14 points eBook Hint Exercise 4-5 (Algo) 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 General factory Required: Activity Measure Direct labor-hours Number of orders Expected Overhead Cost $390,600 $8,600 Number of part types Number of boards Machine-hours $94,160 $ 60,550 $220,000 Expected Activity 43,400 DL 215 orders 107 part types 1,730 boards 18,400 M Print o References 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: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLM) 5,800 28,400 Purchase orders (orders) 71 20 Parts management (part types) Board etching (boards) 28 Ceneral factory (s) 310 2,500 20 770 6,400 4,800 43 42 4,400 01 17 650 0 4,000 5,500 Using the ABC data, determine the total amount of overhead cost assigned to each product.
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