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5 4 points 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
5 4 points 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 eBook Parts management Board etching General factory Hint Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 284,000 $ 6,790 $ 71,340 $ 57,900 $ 229,900 Expected Activity 35,500 DLHS 194 orders 82 part types 1,930 boards 20,900 MHS Print 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 References Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A 3,000 Expected Activity Product B 22,800 43 20 Product C 3,900 48 Product D 5,800 83 22 15 32 13 530 3,600 750 650 7,300 3,900 6,100 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. 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 Activity Rate per DLH per order Parts management Board etching General factory per part type per board per MH < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Assigned Product A Assigned Product B Assigned Product C Assigned Product D $ 0 $ 0 $ 0 $ 0 < Required 1 Required 2 >
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