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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 Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Hachine-hours Expected Overhead Cost: $ 317,600 $ 9,900 $ 67,890 $ 76,000 $ 237,600 Expected Activity 39,700 DLHB 220 orders 93 part types 1,900 boards 21,600 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 Labor-related (DLs) Expected Activity Product A Product B Product C Product D 6,300 Purchase orders (orders) Board etching (boards) Parts management (part types) 70 28 23,700 27 4,600 5,100 40 13 580 General factory (MHS) 3,900 700 8,900 32 620 83 20 0 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 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Activity Rate per DLH Parts management Board etching General factory per order per part type per board per MH Required 2 >
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