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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 Expected Overhead Cost s 390,600 $ 8,600 $ 94,160 $ 60,550 220,800 Expected Activity 43,400 DLHs Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factor Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours 215 orders 107 part types 1,730 boards 18,400 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 Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product C Product D 5,800 71 28 310 2,500 28,400 20 20 770 6,400 4,800 43 42 650 4,000 4,400 81 17 5,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. 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 1Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related Purchase orders Parts management Board etching General factory 9 per DLH 40 per order $ 880 per part type $ 35 per board $12 per MH 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 1Required 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 etching (boards) General factory (MHs) Total
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