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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estim cost and activity for its
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estim 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 $ 174,000 $ 7,200 Number of part types Number of boards Machine-hours $ 66,500 $ 64,800 $ 115,200 Expected Activity 34,800 DLHS 240 orders 95 part types 1,620 boards 14,400 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A Product B Product C Product D 6,800 18,800 4,300 4,900 72 28 41 99 35 13 34 13 330 2,300 780 510 0 6,000 2,100 4,000 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.
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