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

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 ctivity Cost Labor-relsted Purchase orderS Parts managesent Board etching General factory Activity Heasure Expected Activity 0,300 DuHS Direct labor-hours Nunber of oeders Number of part types Number of boards Machine-hours % 270,900 5 12.745 261 orders 97 part types $ 72,400 212,400 1,810 boards 17,700 S Required: . 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 (OLHS) Purchase orders (Corders) Parts management (part types) Board etching (boards) General factory (s Product A Product Product C Product D 7.100 78 13,800 37 5,200 9 4,000 520 3,900 2,900 6,200 4,700 Using the ABC data, determine the total amount of overhead cost assigned to each product Required Required 2 Compute the activity rate for each of the activity cost pools per DLH per order per part type per board per MH Putchase orders Board etching General factory Required 1Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Cost Pool Product A Product B Product C Product D 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

More Books

Students also viewed these Accounting questions