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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 Expected Overhead Cost $ 269,100 Number of orders Number of part types Number of boards Machine-hours $ 11,000 $ 78,440 $ 85,050 $ 242,400 Expected Activity 29,900 DLHS 220 orders 106 part types 1,890 boards 20,200 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 company's four products as follows: Activity Cost Pool Expected Activity Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) Product A 7,500 66 29 580 Product B Product C Product D 13,400 3,800 5,200 30 19 32 92 47 11 General factory (MHS) 2,600 750 7,300 560 0 3,700 6,600 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. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Parts management Board etching Activity Rate per DLH per order per part type General factory per board per MH < Required 1 Required 2 >
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