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is one Q Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and
is one Q
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 Cost Expected Activity Labor-related Direct labor-hours $ 142,500 28,500 DLHS Purchase orders Number of orders $ 15,535 239 orders Parts management Number of part types $ 65,450 B5 part types Board etching Number of boards $ 105,600 1,760 boards General factory Machine-hours $ 144,000 18,000 MS 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 Products Product c Labor-related (DLS) Product D 6,700 13,000 4,100 Purchase orders (orders) 4,700 66 28 48 97 Parts management (part types) 27 12 Board etching (boards) 32 14 510 720 530 0 General factory (8) 3,700 7,500 2,500 4.300 Using the ABC data, determine the total amount of overhead cost assigned to each product Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Rate Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory per DLH per order per part type per board I per MH Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Activity Cost Pool Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned Product A Product B Product C Product D Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total $ 0 $ 0 $ 0 $ 0 Step by Step Solution
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