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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 for its
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 Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 317,600 39,700 DLHs Purchase orders Number of orders $ 9,900 220 orders Parts management Number of part types $ 67,890 93 part types Board etching Number of boards $ 76,000 1,900 boards General factory Machine-hours $237,600 21,600 MHs.
Cost PoolActivity Rate Labor-related Purchase d Parts management Board etching General factory per DLH per order per part type per board per MH 2. The expected activity for the year was distributed among the company's four products as follows Expected Activity Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A 6,300 70 28 580 3,900 Product B 23,700 27 13 700 8,900 Product C 4,600 40 32 620 3,500 Product D 5,100 83 20 0 5,300 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Activity Cost Pool Product A Product B ProductC Product D Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
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