Question: Activity based costing system? Sultan Company uses an activity-based costing system At the beginning of the year, the company made the following estimates of cost
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 Measure Expected Activity Overhead Activity Cost Pool Labor-related Purchase orders Parts management Direct labor-hours Number of orders Number of part types Cost S 165,200 41,300 DLHs S 13,020 82,840 217 orders 109 part types Board etching General factory Number of boards Machine-hours S 92,400 $ 128,100 18,300 MHs 1,680 boards Required: 1. Compute the activity rate for each of the activity cost pools. Cost Pool Activity Rate Labor-related Purchase orders Parts management Board etching General factory per DLH per order per part type per board per MH
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
