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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 i Number of boards Machine-hours Expected Overhead Cost $284,000 $ 6,790 Expected Activity 35,500 DLHS 194 orders $ 71,340 $ 57,900 $ 229,900 82 part types 1,930 boards 20,900 Ms 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) Product A Expected Activity Product B 3,000 22,800 Product C 3,900 Product D 43 22 20 48 5,800 83 530 3,600 15 750 7,300 32 13 650 e 3,900 6,100 General factory (PHs) 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 Activity Rate per DLH per order Board etching General factory per part type per board per MH < Prev 3 of 7 Next > 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. Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Product A Assigned Product B Assigned Product C Assigned Product D Total < Required 1 Required 2
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