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

image text in transcribed
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 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 Machine-hours Expected Overhead Cost $ 380,000 $ 11,935 $ 79,500 $ 93,000 $ 240,500 Expected Activity 38,000 DLHS 217 orders 106 part types 1,860 boards 18,500 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: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) Expected Activity Product Product B Product C Product D 5,400 24,700 3,800 4,100 51 35 48 83 35 14 42 15 590 730 540 0 2,600 8,600 2,000 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. zi Parts management (part types) Board etching (boards) General factory (MHS) 35 590 2,600 14 730 8,600 Using the ABC data, determine the total amount of overhead Complete this question by entering your answers in the tabs 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 General factory Activity Rate 10 per DLH 55 per order 750 per part type 50 per board 13 per MH $ $ $ $ $ Required 1 Parts management (part types) Board etching (boards) General factory (MHS) 35 590 2,600 14 730 8,600 42 540 2,000 15 0 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 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total $ 0 $ 0 $ 0 $

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_2

Step: 3

blur-text-image_3

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 Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions