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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 Labor-related Purchase orders Parts management Board etching General factory Expected Overhead Cost $ 317,600 $ 9,900 $ 67,890 $ 76,000 $ 237,600 Activity Measure Expected Activity 39,700 DLHs Direct labor-hours Number of orders Number of part types Number of boards Machine-hours 220 orders 93 part types 1,900 boards 21,600 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 Activit Product A Product B Product C Product D Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) 6,300 70 28 580 3,900 23,700 27 13 700 8,900 4,600 40 32 620 3,500 5,100 83 20 5,300 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 per DLH per order per part type per board per MH Required Required 2
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