part 1

part 2

Exercise 4-5 Assigning Overhead to Products in ABC (L04-2, 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: Expected Overhead Activity Cost Pool Activity Measure Cost Expected Activity Labor-related Direct labor-hours $ 314,000 31,400 DLHS Purchase orders Number of orders $ 10,215 227 orders Parts management Number of part types $ 98,790 111 part types Board etching Number of boards $ 70,800 1,770 boards General factory Machine-hours $223,600 17,200 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: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHS) 5,000 16,800 4,000 5,600 Purchase orders (orders) 54 33 41 99 Parts management (part types) 15 43 13 Board etching (boards) 460 780 610 General factory (Ms) 3,900 6,100 2,900 4,300 40 Using the ABC data, determine the total amount of overhead cost assigned to each product 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 Activity Rate Labor-related per DLH Purchase orders per order Parts management per part type Board etching per board General factory per MH Required 2 > 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 Assigned Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) Total