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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 $ 380,000 $ 11,935 $ 79,500 $ 93,000 $ 240,500 1. Compute the activity rate for each of the activity cost pools.. Expected Activity 38,000 DLHS 217 orders 106 part types 1,860 boards 18,500 MHs 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLH) Purchase orders (orders) Parts management (part types) Board etching (boards) Ceneral factory (Mis) Product A 5,400 Expected Activity Product B Product C 24,700 3,800 Product D. 4,100 51 35 48 83 35 590 2,600 14 730 8,600 42 15 540 2,000 5,300 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A 5,400 Product B. Product C Product Di 51 24,700 35 3,800 4,100 48 83 35 14 42 15 590 2,600 730 8,600 540 2,000 5,300 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 Activity Rate per DLH Purchase orders Parts management Board etching General factory per order per part type per board per MH es 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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