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 transcribed
image 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: Expected Overhead Activity Cost Pool Activity Measure Cost Expected Activity Labor-related Direct labor-hours $ 390,600 43,400 DLHS Purchase orders Number of orders 8,600 215 orders Parts management Number of part types $ 94,160 107 part types Board etching Number of boards $ 60,550 1,730 boards General factory Machine-hours $ 220,800 18,400 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 (MH) Expected Activity Product Product B Product C Product D 5,800 28,400 4,800 4,400 71 20 43 81 28 20 42 17 310 770 650 0 2,500 6,400 4,000 5,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. 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 Board etching General factory Activity Rate per DLH per order per part type per board per MH Required 2 > 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 Assigned Product B Product C Product A Product D 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

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

Step: 3

blur-text-image

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

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens

5th Edition

0912503351, 9780912503356

More Books

Students also viewed these Accounting questions

Question

8. Identification of nursings contribution to the bottom line.

Answered: 1 week ago

Question

=+What is the most challenging part of working in social media?

Answered: 1 week ago