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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 i Purchase orders Parts management Board etching: General factory Required: Expected Activity 38,000 DLH 217 orders Activity Measure Direct labor-hours. Expected Overhead Cont $ 380,000 Number of orders $ 11,935 Number of part types Number of boards Machine-hours $ 79,500 $ 93,000 106 part types 1,860 boards. $ 240,500 18,500 MHs 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 Expected Activity Product A Product D Product C Product Di Labor-related (DLs) Purchase orders (orders) 5,400 51 24,700 3,800 4,100 35 48 83 Parts management (part types); 35 14 42 15 Board etching (boards). General factory (MHS) 590 2,600 730 540 0 8,600 2,000 5,300 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 Labor-related Purchase orders Activity Rate per DLH per order Assessment Tool iFrame Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Product A Assigned Product B Assigned Product C Assigned Product D + < Required 1 Required 2
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