Question: Exercise 4-5 (Static) Assigning Overhead to Products in ABC (L04-2, LO4-3] Sultan Company uses an activity-based costing system. At the beginning of the year, the
Exercise 4-5 (Static) Assigning Overhead to Products in ABC (L04-2, LO4-3] 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 $ 156,000 26,000 DLHS Purchase orders Number of orders 5. 11.00 220 orders Parts management Number of part types $ 80,000 100 part types Board etching Number of boards $ 90,000 2.000 boards General factory Machine-hours $ 180,00 20,000 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 6,000 60 30 Activity Cost Pool Labor related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory () Expected Activity Product Product 11.000 4.000 40 15 40 900 3.000 Producto 5.000 90 15 Seo 3.00 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. 10 points Required 1 Required 2 500 Using the ABC data, determine the total amount of overhead cost assigned to each product Dances Activity Cost Pool Laborreled DLH) Purchase orders (orders) Portsmanagement part types) Bond etching (boards) Geroral factory (M) To Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned Product A Products Product Product 5 30.000s 06.000 s 24,000 3,000 1.500 2.000 24.000 12.000 30 000 22,600 10.500 27.000 27.000 72,000 27,000 $ 112.500 5 192,000 112.0005 Required Me 117
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