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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 Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 254,800 $ 8,785 $ 72,680 $ 54,900 $ 179,800 Expected Activity 36,400 DLHS 251 orders 92 part types 1,830 boards 17,800 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 Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) Product A 4,000 78 37 530 3, 200 Expected Activity Product B Product C Product D 22,200 4,900 5,300 28 50 95 12 31 12 700 600 6,800 2,100 5,700 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 per part type per board per MH Parts management Board etching General factory Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total
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