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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 Expected Overhead Cost $ 400,000 $ 11,150 Number of part types Number of boards Machine-hours $ 82,820 $ 73,800 $279,500 Expected Activity 40,000 DLHS 223 orders 101 part types 1,640 boards 21,500 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: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (1) Product A 6,700 63 Expected Activity Product B Product C 23,300 4,300 Product D 5,700 39 36 85 37 15 30 11 300 3,900 760 5,500 580 0 2,500 6,300 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 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 A Required 1 Required 21 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) Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Product A Assigned Product B Assigned Product C Assigned Product D General factory (MHs) Total
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