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undefined 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
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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 five activity cost pools: Expected Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor hours $ 231,600 38,600 DLHS Purchase orders Number of orders $ 15,015 231 orders Parts management Number of part types $ 95,200 112 part types Board etching Number of boards $ 106,800 1,700 boards General factory Machine-hours $184,500 20,580 HS 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: Activity Cost Pool Expected Activity Product A Product Product Product D Labor-related (DUS) 4,500 26,600 3,500 4,000 Purchase orders (orders) 70 32 92 Parts management (part types) 32 19 48 13 Board etching (boards) 360 790 630 e General factory (PH) 7,700 2,800 6,000 the ABC data, determine the total amount of overhead cost assigned to each product 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 Labor-related per DLH Purchase orders per order Parts management per part type Board etching per board General factory per MH 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 Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor hours $ 231,600 38,600 DLHS Purchase orders Number of orders $ 15,015 231 orders Parts management Number of part types $ 95,200 112 part types Board etching Number of boards $ 106,000 1,760 boards General factory Machine hours $ 184,500 20,500 PES 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 Product A Product B Product Product D Labor-related (DLHS) 26,600 3,500 Purchase orders (orders) 70 37 32 92 Parts management (part types) 32 13 Board etching (boards) 360 General factory (Ms) 4,000 7,700 2,800 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product 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 Product B Product Product A Product D Activity Cost Pool Labor-related (DLH) Purchase orders (orders) Parts management (part types) Board etching boards) General factory (MHS) TotalStep by Step Solution
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