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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: Estimated Overhead Cost Expected Activity $280,000 40,000 DLHs $ 90,000 1,500 orders Activity Cost Activity Pool Measure Direct labor- Labor-related hours Purchase Number of orders orders Parts Number of part management types Number of Board etching boards General factory Machine-hours $ 120,000 400 Part types 2,000 boards $360,000 $400,000 80,000 MHs Required: 1. Compute the activity rate for each of the activity cost pools. Activity Rate $ Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory per DLH per order per Isetup per board $ $ $ per MH 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Product A Product B Product C Product D 5,600 5,000 3,800 5,500 55 32 17 85 Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) 30 22 40 17 460 3,100 937 8,400 471 5,100 0 5,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. (Leave no cells blank - be certain to enter "O" wherever required.) Using the ABC data, determine the total amount of overhead cost assigned to each product. (Leave no cells blank - be certain to enter "0" wherever required.) Overhead Cost Assigned Product B Product D Product C $ $ $ Activity Cost Pool Product A Labor-related (DLHS) $ Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) TITI HINI Hin Total $ $ $ $
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