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Exercise 4-5 Assigning Overhead to Products in ABC [LO4-2, L04-3) Sultan Company uses an activity-based costing system At the beginning of the year, the company

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Exercise 4-5 Assigning Overhead to Products in ABC [LO4-2, 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: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,eee Expected Activity 44,5e0 DLHS 221 orders 99 part types 1,820 boards 14,800 MHS 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: Product A 5,800 Expected Activity Product B Product 27.300 4 ,500 Product D 5,800 51 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (HS) 550 Soe 2,100 0 4.ee Using the ABC data, determine the total amount of overhead cost assigned to each product. Product A 6,800 51 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product Product C Product D 27,39 4,6e9 5,800 29 09 33 770 550 6,300 2,400 4, eee see 2,100 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. 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 per part type per board Parts management Board etching General factory Required 2 > Required 1 Requi Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product B Product Product Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS)

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