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Please answer the following questions below Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates
Please answer the following questions below
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 $ 165,200 $ 13,020 $ 82,840 $ 92,400 $ 128, 100 Expected Activity 41,300 DLHs 217 orders 109 part types 1,680 boards 18,300 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: Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A Product B Product C Product D 7,400 24,400 3,500 6,000 60 29 45 83 38 18 38 15 340 700 640 0 2,600 6,200 4,000 5,500 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 Cost Pool Activity Rate Labor-related per DLH Purchase orders per order per part type Parts management Board etching General factory per board per MH 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 (MHs) TotalStep by Step Solution
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