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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. Number of part types Number of boards Machine-hours Expected Overhead Cost $ 254,800 $ 8,785 $ 54,900 $170,000 1. Compute the activity rate for each of the activity cost pools. $ 72,680 Expected Activity 36,400 DLHS 251 orders 92 part types 1,830 boards 17,000 MHS 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (Mils) Product A 4,000 78 37 530 3,200 Expected Activity Product B Product C 22,200 4,900 Product D 5,300 28 50 95 12 31 12 700 6,000 600 0 2,100 5,700 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 etching Activity Rate per DLH per order per part type General factory per board per MH Required Y Required 2 >
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