Question
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 Activity Measure Direct labor-hours Number of orders Expected Overhead Cost $ 269,100 $ 11,888 General factory Number of part types Number of boards Machine-hours $ 78,448 $ 85,058 $ 242,488 Parts management Board etching Expected Activity 29,988 DLHS 228 orders 186 part types 1,890 boards 28,200 MH Required: 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 Expected Activity Product A Product 8 Product C Product D Labor-related (OLHS) Purchase orders (orders) 7,500 66 13,400 38 3,800 32 5,200 92 Parts management (part types) 29 19 47 11 Board etching (boards) 588 758 560 General factory (MHS) 2,600 7,388 3,788 6,688 Using the ABC cats, 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. Activity Cost Pool Product A Overhead Cost Assigned Product B Product C Product D Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total
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