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 Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor-hours $ 400,000 40,000 DLHS Purchase orders Number of orders $ 11,150 223 orders Parts management Number of part types $ 82,820 101 part types Board etching Number of boards $ 73,800 1,640 boards General factory Machine-hours $ 279,500 21,500 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 (MHS) Product A 6,700 63 37 300 3,900 Expected Activity Product B Product C 23,300 4,300 39 36 15 38 760 580 8,800 2,500 Product D 5,700 85 11 0 6,300 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 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Parts management per part type Board etching per board General factory per MH Required 1 Required 2 > 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 Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor-hours $ 400,000 40,000 DLHS Purchase orders Number of orders $ 11,150 223 orders Parts management Number of part types $ 82, 820 101 part types Board etching Number of boards $ 73,800 1,640 boards General factory Machine-hours $ 279,500 21,500 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 Expected Activity Product A Product B Product c Product D Labor-related (DLHS) 6,700 23,300 4,300 5,700 Purchase orders (orders) 63 39 36 85 Parts management (part types) 37 15 38 11 Board etching (boards) 300 760 580 0 General factory (MHS) 3,900 8,800 2,500 6,300 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. Activity Cost Pool Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned 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
