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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: Expected Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor-hours $ 254,800 36,400 DLHS Purchase orders Number of orders $ 8, 785 251 orders Parts management Number of part types $ 72,680 92 part types Board etching Number of boards $ 54,900 1,830 boards General factory Machine-hours $ 170,000 17,000 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 4,000 78 37 530 3,200 Expected Activity Product B Product C 22,200 4,900 28 50 12 31 700 600 6,000 2,100 Product D 5,300 95 12 0 5,700 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 $ 0 $ 0 $ 0 $ 0
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