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Sultan Company uses an activitybased costing system. At the beginning of the year, the company made the following estimates of cost and activity for its
Sultan Company uses an activitybased 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 Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,888 38,888 DLHs Purchase orders Number of orders $ 6,988 238 orders Parts management Number of part types $ 81,128 184 part types Board etching Number of boards $ 45,888 1,888 boards General Factory Machine-hours $ 158,388 16,788 MHs l 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: Expected Activity Activity Cost Pool Product A Product B Product C Product D Laborrelated (DLHs) Laos 14, 396 4,488 5, 188 Purchase orders (orders) 58 26 46 188 Parts management (part types) 38 18 3? 19 Board etching (boards) 588 728 588 8 General Factory (MHs) 3,688 6,488 2,188 4,688 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. Laborrelated Purchase orders per order Parts management per part type Board etching per board General factory Required 2 > Sultan Company uses an activitybased 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 Activity Cost Pool Activity Measure Overhead Cost Expected Activity Laborrelated Direct laborhours $ 184,869 39,899 DLHs Purchase orders Number of orders $ 6,966 239 orders Parts management Number of part types $ 81,129 194 part types Board etching Number of boards $ 45,669 1,899 boards General 'Factory Machine-hours $ 159,369 16,?99 MHs | 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: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHs) Loos 14,399 4,499 5,199 Purchase orders (orders) 58 26 46 199 Parts management (part types) 36 18 3? 19 Board etching (boards) 566 729 589 9 General 'Factory (MHs) 3,666 6,499 2,199 4,699 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the labs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Laborrelated (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
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