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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
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: xpected Overhead Activity Cost Pool Labor-related Activity Measure Direct labor-hours Expected Activity 40,000 DLHS Cost 400,000 11,150 82,820 $73,800 279,500 Purchase orders Number of orders 223 orders Number of part types Parts management Board etching General factory 101 part types 1,640 boards 21, 500 Hs Number of boards Machine-hours 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: Expected Activity Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product CProduct D 23,300 5,700 6,700 4,300 63 39 36 85 37 15 38 11 300 760 580 3,900 8,800 2,500 6,300 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 Activity Rate per DLH per order per part type Labor-related Purchase orders Parts management Board etching General factory per board per MH 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 Activity Cost Pool Product D Product A Product B Product C Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total $ 0
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