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Sultan Company uses an activity-based costing systenm 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 systenm At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools Activity Measure Expected Overhead Expected Activity Cost Activity Cost Pool 142,500 DLHs Labor-related Direct labor-hours $'28,500 Purchase orders Parts Number of orders $ 15,535 $65,450 239 orders Number of part types 85 part types management 105,600 Board etching Number of boards $ 1,760 Doards MHs 144,000 18,000 General factory Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Parts management per part type Board etching per board General factory per MH 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 C Product D 4100 48 4,700 6,70013,000 28 97 32 27 14 12 510 720 530 0 4,300 3,700 7,500 2,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
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