Answered step by step
Verified Expert Solution
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
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 Dirett labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 156,000 $ 11,000 $ 8e, eae $ 9e, eee $ 180, eee Expected Activity 26,080 DLHS 22e orders 100 part types 2,boards 2e,eee 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 6,888 60 3e 580 3,000 Expected Activity Product B Produ C Product 11,00 4,888 5,bea 3e 40 90 15 40 15 988 600 8,888 3, aea 6,080 Using the ABC data, determine the total amount of overhead cost assigned to each product. Activity Rate Activity Cost Pool Labor-related per DLH Purchase orders per order per part type Parts management Board etching General factory per board per MH Overhead Cost Assigned Product B Product C Product D Product A Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started