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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
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 Expected Activity 38,600 DLHS Expected Overhead Cost $231,600 Number of orders $15,015 231 orders Number of part types $95,200 112 part types Number of boards Machine-hours $106,800 $184,500 1,780 boards 20,500 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 (DLH) Purchase orders (orders) Parts management (part types) Expected Activity Product A 4,500 70 32 790 4,000 7,700 4,000 Board etching (boards) General factory (MHs) Product B Product C Product D 26,600 37 3,500 32 92 777] 360 19 48 630 2,800 13 6,000 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 Activity Rate per DLH per order Board etching General factory per part type per board per MH Required 2 >
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