Question
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates cost and activity for its
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates 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 $ 148,000 $ 15,180 $ 85,680 $ 99,550 $ 162,400 Expected Activity 29,600 DLHS 253 orders 102 part types 1,810 boards 20,300 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: Expected Activity Product B Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) Product A 7,900 75 12,800 Product C 3,900 Product D 5,000 39 45 94 30 420 3,200 13 41 18 780 610 8,200 3,600 5,300 General factory (MHS) Using the ABC data, determine the total amount of overhead cost assigned to each product.
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