Question: 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 pool Expected Overhead Expected Activity Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Cost Direct labor-hours Number of orders Number of part types Number of boards Machine-hours s 400,000 40,000 DLH s 82,820 279,500 21,500 MHs 11,150 223 orders 101 part types 73,800 1,640 boards Required: 1. Compute the activty 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 Product B Product C Product D 6,700 63 37 300 3,900 23,300 39 15 760 8,800 4,300 36 38 580 2,500 5,700 85 6,300 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this auestion bv enterina vour answers in the tabs below
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