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 Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 400,000 $ 11,150 $ 82,820 $ 73,800 $ 279,500 Expected Activity 40,000 DLHS 223 orders 101 part types 1,640 boards 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 pes) 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 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Activity Cost Pool Assigned Assigned Assigned Assigned Product A Product B Product C Product D Labor-related (DLHS) $ 67,000 $ 233,000 $ 43,000 $ 57.000 Purchase orders (orders) 3,150 1,950 1,800 4,250 Parts management (part types) Board etching (boards) General factory (MHS) Total $ 70.150 $ 234,950 $ 44,800 $ 61,250
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