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 Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Expected Overhead Cost $174,000 $ 7,200 $ 66,500 Number of part types Number of boards Machine-hours $ 64,800 $ 115,200 1. Compute the activity rate for each of the activity cost pools. Expected Activity 34,800 DLHS 240 orders. 95 part types 1,620 boards 14,400 MHS 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) Product A 6,800 Product B Product C Product D 18,800 Purchase orders (orders) 72 28 4,300 41 4,900 99 Parts management (part types) Board etching (boards) 35 330 13 34 13 780 510 General factory (MHS) 0 2,300 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. Activity Cost Pool Labor-related Purchase orders Parts management Board elching General factory Activity Rate per DLH per order per part type per board per MH Required Required 2 >
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