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Sultan Company uses an activity - based costing system. At the beginning of the year, the company made the following estimates of cost and activity
Sultan Company uses an activitybased costing system. At the beginning of the year, the company made the following estimates of
cost and activity for its five activity cost pools:
Required:
Compute the activity rate for each of the activity cost pools.
The expected activity for the year was distributed among the company's four products as follows:
Using the ABC data, determine the total amount of overhead cost assigned to each product.
Compute the activity rate for each of the activity cost pools.
Activity Cost Pool Activity Rate
Laborrelated per DLH
Purchase orders per order
Parts management per part type
Board etching per board
General factory per MH
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