Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribed

image text in transcribed

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 $ 148,000 15,180 $ 85,680 $ 99,550 $ 162,400 Expected Activity 29,600 DLHs 253 orders 102 part types 1,810 boards 20,300 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 7,900 75 30 420 3,200 Expected Activity Product B Product C 12,800 3,900 39 45 13 41 780 610 8,200 3,600 Product D 5,000 94 18 0 5,300 Using the ABC data, determine the total amount of overhead cost assigned to each product. Required 1 Required 2. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate per DLH Labor-related Purchase orders per order per part type Parts management Board etching General factory per board per MH Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product A Product B Product C Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total $ 0 $ 0 $ 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

11th Edition

0131867121, 978-0131867123

More Books

Students also viewed these Accounting questions

Question

3. Raster images for screen projects need to be 72 dpi to scale.

Answered: 1 week ago