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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: 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 $ 270,900 $ 11,745 $ 78,570 $ 72,400 $ 212,400 Expected Activity 30,100 DLHS 261 orders 97 part types 1,810 boards 17,700 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 7,100 78 38 550 2,900 Expected Activity Product B Product C 13,800 4,000 37 47 15 30 740 520 6,200 3,900 Product D 5,200 99 14 4,700 Using the ABC data, determine the total amount of overhead cost assigned to each product. 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
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