Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 269,100 29,900 DLHs
Purchase orders Number of orders $ 11,000 220 orders
Parts management Number of part types $ 78,440 106 part types
Board etching Number of boards $ 85,050 1,890 boards
General factory Machine-hours $ 242,400 20,200 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 companys four products as follows:

Compute the activity rate for each of the activity cost pools.

Activity Cost Pool Activity Rate
Labor-related per DLH
Purchase orders per order
Parts management per part type
Board etching per board
General factory per MH

Compute the activity rate for each of the activity cost pools.

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 Product C Product D
Labor-related (DLHs)
Purchase orders (orders)
Parts management (part types)
Board etching (boards)
General factory (MHs)
Total
image text in transcribed
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 (Mis) Expected Activity Product Product B Product C Product D 7,500 13,400 3,800 5,200 66 30 32 92 29 19 47 11 580 750 560 0 2,600 7,300 3,700 6,600 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Product C Product D Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board otching (boards) General factory (MHS) Total 0 $ 0 $ $ 0 $ 0

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

Students also viewed these Accounting questions

Question

1. List and describe the various subjective elements of culture.

Answered: 1 week ago

Question

2. List the advantages of listening well

Answered: 1 week ago