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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 Direct labor-hours Number of orders $ 11,745 Activity Measure Expected Overhead Cost $ 270,900 Expected Activity 30,100 DLHS Number of part types Number of boards Machine-hours $ 72,400 $ 212,400 F FIF Parts management Board etching General factory $ 78,570 261 orders 97 part types 1,810 boards 17,700 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: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A Product B Product C Product D 7,100 13,800 4,000 5,200 78 37 47 99 38 15 30 14 550 2,900 740 6,200 520 0 3,900 4,700 Using the ABC data, determine the total amount of overhead cost assigned to each product. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Activity Cost Pool Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Product A Assigned Product B Assigned Product C Assigned Product D Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total 0 0 0 0 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 Activity Rate Labor-related Purchase orders Parts management Board etching General factory $ 63,900 per DLH $ 3,510 per order $ 30,780 per part type $22,000 per board $ 34,800 per MH
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