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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 Expected Overhead Cost $142,500 $ 15,535 Number of part types Number of boards Machine-hours $ 65,450 $ 105,600 $144,000 Expected Activity 28,500 DLH 239 orders 85 part types 1,760 boards 18,000 MH 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 6,700 Expected Activity Product B Product C 13,000 4,100 Product D 4,7001 66 28 48 97 27 12 32 14 510 3,700 720 7,500 530 0 2,500 4,300 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 < Prev 3 of 7 Next >
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