Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

mmm Using the ABC data, determine the total amount of overhead cost assigned to each product. ences Activity Cost Pool Overhead Cost Overhead Cost Overhead

image text in transcribedimage text in transcribedimage text in transcribed
mmm Using the ABC data, determine the total amount of overhead cost assigned to each product. ences Activity Cost Pool Overhead Cost Overhead Cost Overhead Cost Assigned Overhead Cost Assigned Assigned Product A Assigned Product B Product C Product D Labor-related (DLHs) $ 156,000 $ 26,000 $ 6 $ 112,500 Purchase orders (orders) 11,000 220 50 192,000 Parts management (part types) 80,000 100 800 112,000 Board etching (boards) 90,000 2.000 45 100,500 General factory (MHs) 180,000 20,000 9 Total $ 517,000 $ 48,320 $ 910 $ 517,000 Mc Graw Hill MacBook Air DI 20 Q F6 F7 F4 F5 SC F3 F2 F1 * $ %2 Exercise 4-5 (Static) 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: nts Activity Cost Pool Expected Labor-related Activity Measure Overhead Cost Expected Activity Purchase orders Direct labor-hours $ 156, 000 Number of orders 26, 000 DLHS Parts management $ 11, 000 220 orders Number of part types Board etching $ 80, 000 100 part types Number of boards General factory $ 90, 000 2,000 boards eBook Machine-hours $ 180, 000 20, 000 MHS Required: 1. Compute the activity rate for each of the activity cost pools. Hint 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product A Product B Product C Product D References Labor-related (DLHs) 6, 000 11, 000 4, 000 5, 000 Purchase orders (orders) 60 30 40 90 Parts management (part types) 30 15 40 15 Board etching (boards) 500 900 600 6, 000 General factory (MHs) 3, 000 8,000 3,000 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 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned Product D Activity Cost Pool Product A Product R Product C. Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone Of Business Decision Making

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

8th Edition

0357715349, 978-0357715345

More Books

Students also viewed these Accounting questions