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: Expected Overhead Cost Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct laber-hours Number of orders Number of part types Number of boards Machine-hours $ 233,600 $ 9,360 $ 80,000 $ 59,850 $ 236,500 Expected Activity 29, 2e0 DLHS 234 orders 100 part types 1,710 boards 21,500 MMS 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 Product Product Product D Labor-related (DLHS) 4,400 16,100 3,300 5,400 Purchase orders Corders) 74 29 50 81 Parts management (part types) 25 18 13 Board etching (boards) 430 750 530 General factory (es) 3,300 8,100 3,600 6,500 44 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. 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 (DLNS) Purchase orders Corders) Parts managenent (part types) Board etching (boards) General factory (MS) Expected Activity Product Product Product Product D 16,100 3,300 5,400 74 29 se 01 25 18 13 430 750 530 3,300 8,100 3,600 6,500 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 Parts management Board etching General factory Activity Rate per DLH per order per part type per board per MH 5,400 Activity Cast Pee! Labor related (DHS) Purchase orders erders) Parts management (part types) Board etching (beards) General Factory (M) Expected Activity Product Product Product Product 4,400 16,100 3,300 74 29 50 25 18 430 750 3,300 B, 100 3.600 6,500 Using the ABC data, determine the total amount of overhead cost assigned to each product Camplete this question by entering your answers in the tabs below. Required: Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cont Assigned Product Product Product A Product Activity Cost Pool Laborrelated (DLH) Purchase orders (orders Parts management part types) Board etching (board) General factory (MH)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

4th edition

978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730

Students also viewed these Accounting questions