Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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:

image text in transcribed

image text in transcribed

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 Measure Expected Overhead Expected Activity DLHS Activity Cost Pool Cost 135,600 24 Labor-related Direct labor-hours 22,600 $ 8,400 $ 68,870 240 orders Purchase orders Number of orders Number of part types 97 part types Parts management $ 53,700 $171,000 Board etching General factory Number of boards Machine-hours 1,790 boards 19,000 MHs Requlred: 1. Compute the activity rate for each of the activity cost pools. Activity Rate Activity Cost Pool 6 per DLH Labor-related 35 per order Purchase orders 710 per part type Parts management Board etching 30 per board 9 per MH General factory %24 %24 The expected activity for the year was distributed among the company's four products 2. as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Product A Product B Product C Product D 4,000 100 3,000 11,900 3,700 Purchase orders (orders) Parts management (part 73 34 33 23 15 49 10 types) Board etching (boards) General factory (MHs) 480 770 540 6,000 5,900 3,600 3,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Regulation In Japan Evolution And Development From 2001 To 2015

Authors: Masatsugu Sanada, Yoshihiro Tokuga

1st Edition

0367221071, 9780367221072

More Books

Students also viewed these Accounting questions

Question

What are the purposes of promotion ?

Answered: 1 week ago

Question

What processes are involved in perceiving?

Answered: 1 week ago