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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: Expected Overhead Cost Activity Measure $ 231,600 $ 15,015 $ 95,200 $ 106,800 $ 184,500 Expected Activity 38,600 DLHS 231 orders 112 part types 1,780 boards 20,500 MHs Direct labor-hours Number of orders Number of part types Number of boards Machine-hours 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 (MHS) Product A Expected Activity Product B 4,500 70 26,600 Product C 3,500 Product D 4,000 37 32 92 32 360 4,000 19 48 13 790 630 0 7,700 2,800 6,000 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 Activity Rate per DLH per order Parts management Board etching General factory per part type per board per MH
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