Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...

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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: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Expected Overhead Cost Direct labor-hours Number of orders $ 231,600 Expected Activity 38,600 DLHS $ 15,015 Number of part types Number of boards Machine-hours $ 95,200 $ 106,800 231 orders 112 part types 1,780 boards 20,500 MHS $ 184,500 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 4,500 Product B Product C Product D 26,600 3,500 4,000 70 37 32 92 32 19 48 13 360 790 630 0 4,000 7,700 2,800 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. 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: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Expected Overhead Cost Direct labor-hours Number of orders $ 231,600 Expected Activity 38,600 DLHS $ 15,015 Number of part types Number of boards Machine-hours $ 95,200 $ 106,800 231 orders 112 part types 1,780 boards 20,500 MHS $ 184,500 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 4,500 Product B Product C Product D 26,600 3,500 4,000 70 37 32 92 32 19 48 13 360 790 630 0 4,000 7,700 2,800 6,000 Using the ABC data, determine the total amount of overhead cost assigned to each product.

Answer rating: 100% (QA)

1 Laborrelated activity rate Activity Rate 231600 38600 DLHs 6 per DLH 2 Purchase orders activity ra... View the full answer