Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain 4 Sultan Company uses an activity-based costing system At the beginning of the year, the company made the following estimates of cost and

image text in transcribed

please explain

4 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. 10 points 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 $ 254,800 $ 8,785 $ 72,680 $ 54,900 $ 170,000 Expected Activity 36,400 DLHS 251 orders 92 part types 1,839 boards 17,000 MHS eBook Hint Print References 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) Product A 4,000 78 37 530 3,200 Expected Activity Product B Product Product D 22,200 4,900 5,300 28 50 95 12 31 12 700 600 0 6,000 2,100 5,700 Using the ABC data, determine the total amount of overhead cost assigned to each product

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: David Spiceland

6th Edition

1265889716, 978-1265889715

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago