Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help! thank you! Saved 3. Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates
please help! thank you! Saved 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: ok ht 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 $ 400,000 $ 11,150 $ 82,820 $ 73,800 $ 279,500 Expected Activity 40,000 DLHS 223 orders 101 part types 1,640 boards 21,500 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 Product Product Product D Labor-related (DLHS) 6,700 23,300 4,300 5,700 Purchase orders (orders) 63 39 36 85 Parts management (part types) 37 15 38 11 300 Board etching (boards) 760 580 0 General factory (Ms) 3,900 8,800 2,500 6,300 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 Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Rate per DLH per order per part type per board per MH Required 1 Required 2 Complete this question by entering your answers in the tabs below. Hint Print 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) Total $ 0 $ 0 $ 0 0 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started