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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: Expected Overhead Coat $284,000 Activity Measure Direct labor-hours Number of orders) Number of part types Number of boards Machine-hours $ 229,900 $ 6,790 $71,340 $ 57,900 Expected Activity 35,500 DLH 194 orders 82 part types 1,930 boarde 20,900 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: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLH) 3,000 22,800 3,900 5,800 Purchase orders (orders) 43 20 48 OX Parts management (part types) 22 Board etching (boards) General factory (is) 530 3,600 15 750 7,300 32 13 650 0 3,900 6,100 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 Activity Rate per DLH per order Parts management Board etching General factory per part type per board per MH
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