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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 $ 317,600 Expected Activity 39,700 DLHS $ 9,900 220 orders Number of part types Number of boards Machine-hours $ 67,890 $ 76,000 $ 237,600 1. Compute the activity rate for each of the activity cost pools. 93 part types 1,900 boards 21,600 MHS 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Expected Activity Product A Labor-related (DLHS) 6,300 Product B 23,700 Product C 4,600 Product D. 5,100. Purchase orders (orders) 70 27 40 831 Parts management (part types) 28 13 32 20 Board etching (boards) General factory (MHS) 580 3,900 700 620 0 8,900 3,500 5,300 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
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