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 pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cont $ 184,800 $ 6,900 $ 81,120 $ 45,000 $ 150,300 1. Compute the activity rate for each of the activity cost pools. Expected Activity 30,800 DLH 230 orders 104 part types 1,800 boards 16,700 MH 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLH) Product A 7,000 Product B Product C Product D 14,300 4,400 5,100 Purchase orders (orders). 58 26 Parta management (part types) 30 18 46 37 100 19 Board etching (boards) General factory (Mils)) 500 3,600 720 580 6,400 2,100 4,600 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. 4 points Complete this question by entering your answers in the tabs below. eBook Required 1 Hint Required 2 Print References Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Activity Cost Pool Assigned Product A Assigned Product B Assigned Product C Assigned Product D Labor-related (DLHs) $ 42,000 Purchase orders (orders) 1,740 Parts management (part types) Board etching (boards) 23,400 12.500 General factory (MHS) 32,400 Total $ 112,040 $ 0 $ 0 $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!