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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,
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 Expected Overhead Cost $317,600 $ 9,900 Direct labor-hours Number of ordere Number of part types Number of boards Machine-hours $ 67,890 $76,000 $ 237,600 Expected Activity 39,700 DL 220 orders 93 part types 1,900 boards 21,600 Mils 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 (DLS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (HHS) Product A 6,300 Expected Activity Product B Product C 23,700 4,600 Product D. 5,100 70 27 40 83 28 13 32 20 580 3,900 700 620 O 8,900 3,500 5,300 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 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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