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	$	314,000		31,400		DLHs
Purchase orders	Number of orders	$	10,215		227		orders
Parts management	Number of part types	$	98,790		111		part types
Board etching	Number of boards	$	70,800		1,770		boards
General factory	Machine-hours	$	223,600		17,200		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:

	Expected Activity
Activity Cost Pool	Product A			Product B			Product C			Product D
Labor-related (DLHs)		5,000			16,800			4,000			5,600
Purchase orders (orders)		54			33			41			99
Parts management (part types)		40			15			43			13
Board etching (boards)		460			700			610			0
General factory (MHs)		3,900			6,100			2,900			4,300

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

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