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Sultan Company uses an activity-based costing systemAt the beginning of the year, the company made the following estimates of cost and activity for its five
Sultan Company uses an activity-based costing systemAt 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 Expected Activity 135,600 22,680 8,480 240 orders 68,870 97 part types 53,700 1,790 boards 171,000 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 ( DLHS) Purchase orders ( orders) Parts management ( part types) Board etching (boards ) General factory (MHS) Expected Activity Product A Product B Product Product D 3,000 11,900 3,708 4,000 73 34 33 100 2315 4910 480 770 540 3,600 6,000 3,500 Using the ABC data, determine the total amount of overhead cost assigned to each product
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