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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 Expected Activity 38,600 DLHS $ 231,600 $ 15,015 $ 95,200 $ 106,800 $ 184,500 231 orders 112 part types 1,780 boards 20,500 MHS 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 4,500 70 26,600 37 Expected Activity Product B Product C 3,500 Product D 4,000 32 92 32 19 48 13 360 790 630 4,000 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 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total Assigned Product A Assigned Product B Assigned Product C Assigned Product D $ 0 $ 0 $ 0 $ 0 < Required 1 Required 2
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