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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: Expected Overhead Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Cont $311,500 $ 8,840 Number of part types Number of boards Machine-hours $ 71,280 $ 63,700 Expected Activity 44,500 DLHB 221 orders 99 part types 1,820 boards $ 148,000 14,800 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 (DLila) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (Mis) Expected Activity Product A Product B Product C Product D. 6,800 51 34 27,300 29 4,600 5,800 49 921 17 33 15 500 770 550 0 2,100 6,300 2,400 4,000
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