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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: 8 01:59:26 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 $ 241,500 $ 6,060 $ 90,300 $ 69,600 $ 193,000 Expected Activity 34,500 DLHS 202 orders 105 part types 1,740 boards 19,300 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: Product A 5,700 53 Expected Activity Product B Product C Product D 19,700 4,900 4,200 92 13 17 740 650 8,400 2,000 5,300 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) 24 33 37 350 3,600 Using the ABC data, determine the total amount of overhead cost assigned to each product
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