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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
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 i Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 156,000 $ 11,000 $ 80,000 $ 90,000 $ 180,000 1. Compute the activity rate for each of the activity cost pools. Expected Activity 26,000 DLHS 220 orders 100 part types 2,000 boards 20,000 MHS 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLBs) Purchase orders (orders) Product A 6,000 60 Product B Product C Product D 11,000 30 4,000 40 5,000 90 Parts management (part types) 30 Board etching (boards) General factory (MHS) 500 3,000 15 900 8,000 40 15 600 3,000 0 6,000 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 Parts management Board etching General factory per order per part type per board. per MH Required 1 Required 2 > 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 Assigned Product A Overhead Cost Assigned Product B Overhead Cost Assigned Product C Overhead Cost Assigned Product D < Required 1 Required 2 >
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