Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Required: Activity Heasure Direct labor-hours Number of orders Expected Overhead Cost $184,800 Expected Activity 30,800 DLH 230 orders 104 part types 1,800 boards. 16,700 MH $ 6,900 Number of part types Number of boards Machine-hours $ 81,120 $ 45,000 $ 150,300 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: Activity Cost Pool Product A Labor-related (DLH) 7,000 Expected Activity Product D Product C 14,300 4,400 Product D 5,100 Purchase orders (orders) Parts management (part types) +58 30 26 46 Board etching (boards) 500 General factory (Hils) 3,600 18 720 6,400 37 100 19 580 2,100 4,600 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. eBook Hint Print Complete this question by entering your answers In the tabs below. Required 1 Required 2 References Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Rate per DLH per order per part type per board per MH < Bartend Required 2 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started