Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...
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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 five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Activity Measure Direct labor-hours Number of orders Expected Overhead Cost $ 156,000 Expected Activity 26,000 DLHS $ 11,000 220 orders Board etching General factory Required: Number of part types Number of boards Machine-hours $ 80,000 $ 90,000 $ 180,000 100 part types 2,000 boards 20,000 MHS 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) Expected Activity Product A Product B Product C Product D 6,000 11,000 4,000 5,000 60 30 40 90 30 15 40 15 500 3,000 900 600 B 8,000 3,000 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Answer is complete but not entirely correct. 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Overhead Cost Assigned Product A Overhead Cost Assigned Assigned Cost Assigned Product B Product C Product D S 34,000 2,160 x $ 94,000 $ 21,500 S 840 x 1.230 x 24,500 9.100 23,800x 24,500 x 2.970 x 9.100x 13,200 x 31,200 x 20.400x 18,400 S 92,260 $ 48,000 183,140 16,800 32,000 x $ 83,730 $ 68,570 < Required 1 Required 2 > 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 Activity Measure Direct labor-hours Number of orders Expected Overhead Cost $ 156,000 Expected Activity 26,000 DLHS $ 11,000 220 orders Board etching General factory Required: Number of part types Number of boards Machine-hours $ 80,000 $ 90,000 $ 180,000 100 part types 2,000 boards 20,000 MHS 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) Expected Activity Product A Product B Product C Product D 6,000 11,000 4,000 5,000 60 30 40 90 30 15 40 15 500 3,000 900 600 B 8,000 3,000 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Answer is complete but not entirely correct. 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Overhead Cost Assigned Product A Overhead Cost Assigned Assigned Cost Assigned Product B Product C Product D S 34,000 2,160 x $ 94,000 $ 21,500 S 840 x 1.230 x 24,500 9.100 23,800x 24,500 x 2.970 x 9.100x 13,200 x 31,200 x 20.400x 18,400 S 92,260 $ 48,000 183,140 16,800 32,000 x $ 83,730 $ 68,570 < Required 1 Required 2 >
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Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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