Exercise 4-5 (Algo) Assigning Overhead to Products in ABC (L04-2, L04-3) 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: Expected Activity Cost Pool Activity Measure Overhead Coat Expected activity Labor-related Direct labor-hours 5.400,000 40,000 DI Purchase orders Number of orders $ 11,150 223 orders Parts management Number of part types $ 82,820 101 part types Board atching Number of boards $ 73,800 1,640 boards General factory Machine-hours $ 279,500 21,500 M 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 Cout Pool Expected Activity Product A Labor-related (DLR) Product Product C Product D 5,700 23,300 Purchase orders (orders) 4,300 5,700 63 39 36 85 Parts management (part types) 37 15 38 11 Board etching (boards) 300 760 580 General factory (M) 3,900 8.800 2,500 6,300 Using the ABC data, determine the total amount of overhead cost assigned to each product. 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Expected Activity Product A Product Product c Product D Labor-related (DLHS) 6,700 23,300 4,300 5,700 Purchase orders (orderu) 63 39 85 Parts management (part types) 37 15 38 Roard etching (boards) 300 760 General factory (MH) 3,900 8,800 2,500 6,300 Using the ABC data, determine the total amount of overhead cost assigned to each product. 36 11 580 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 Activity Ratu Labor-related per DLM Purchase orders per order Parts management per part type Board etching per board General factory per MH Required 2 > 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: 39 Activity Cost Pool Expected Activity Product Products Labor-related (DLHS) Product Product D 6,700 23,300 4,300 Purchase orders (ordera) 5,700 63 36 85 Parts management (part types) 37 15 38 11 Board etching boards) 300 760 580 0 General factory (M) 3,900 8,800 2,500 6,300 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 hquired 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 Assigned Assigned Assigned Assigned Product A Product Product D Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) 0 $ 0 $ 05 Product B Total
