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 $ 142,500 $ 15,535 $ 65,450 $ 105,600 $144,000 1. Compute the activity rate for each of the activity cost pools. Expected Activity 28,500 DLH 239 orders 85 part types 1,760 boards 18,000 MH 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLs) Product A 6,700 Purchase orders (orders) 66 28 Expected Activity: Product B Product C 13,000 4,100 48 Product D 4,700 97 Parts management (part types) 27 12 32 14 Board etching (boards) 510 720 530 0 General factory (HRs) 3,700 7,500 2,500 4,300 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 11 Required 2 Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 7.00 per direct labor-hour $7.00 per machine-hour $40.00 per setup $ 100.00 per order $ 100.00 per shipment $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 5.00 $ 4.50 5,000 B52 $ 34.00 $5.00 200 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours 1,200 50 Machine-hours 3,200 20 Machine setups 5 Production orders 7 5 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 378 852 Unit product cost
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