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 Activity Measure Expected Overhead Cost $ 269,100 Expected Activity 29,900 DLHS 220 orders Direct labor-hours Number of orders $ 11,000 Number of part types $ 78,440 Number of boards Machine-hours $ 85,050 106 part types 1,890 boards $ 242,400 20,200 MHS General factory 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: Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A Product B Product C Product D 7,500 13,400 3,800 5,200 66 30 32 92 29 19 47 11 580 2,600 750 560 0 7,300 3,700 6,600 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. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related Purchase orders per DLH per order Parts management Board etching General factory per part type per board per MH < Required 1 Required 2 > Required 1 Required 2 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 Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Assigned Product A Assigned Product B Assigned Product C Assigned Product D < Required 1 Required 2 >

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