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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 Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 270,900 $ 11,745 $ 78,570 $ 72,400 $ 212,400 Expected Activity 30,100 DLHS 261 orders 97 part types 1,810 boards 17,700 MHS ok t 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: at ) Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A Product B Product C Product D 7,100 13,800 4,000 5,200 78 37 47 99 38 15 30 14 550 740 520 0 2,900 6,200 3,900 4,700 nces Using the ABC data, determine the total amount of overhead cost assigned to each product. 2,900 6,200 3,900 4,700 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 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Activity Rate per DLH Purchase orders per order Parts management Board etching General factory per part type per board per MH Required 1 Required 2 > 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 Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
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