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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 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 $165,200 $ 13,020. $82,840 5 92,400 $128,100 Expected Activity 41,300 DUS 217 orders 109 part types 1,680 boards 1,300 s 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: Expected Activity Activity Cost Pool Product A Labor-related (OLMS) Product B 7,400 24,400 Purchase orders (orders) 4 29 Board etching (boards) Parts management (part types) 38 18 340 700 General factory (19) 2,600 6,200 Product C Product D 3,500 6,000 45 83 38 15 640 0 4,000 5,500 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 General factory Activity Rate per DLH per order per part type per board per MH Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total Assigned Product A Assigned Product B Assigned Product C Assigned Product D < Required 1 Required 2
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