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	Activity Measure	Expected Overhead Cost			Expected Activity
Labor-related	Direct labor-hours	$	156,000		26,000		DLHs
Purchase orders	Number of orders	$	11,000		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	$	180,000		20,000		MHs

Required:

1. Compute the activity rate for each of the activity cost pools.

2. The expected activity for the year was distributed among the companys four products as follows:

	Expected Activity
Activity Cost Pool	Product A			Product B			Product C			Product D
Labor-related (DLHs)		6,000			11,000			4,000			5,000
Purchase orders (orders)		60			30			40			90
Parts management (part types)		30			15			40			15
Board etching (boards)		500			900			600			0
General factory (MHs)		3,000			8,000			3,000			6,000

Using the ABC data, determine the total amount of overhead cost assigned to each product.

• Required 1
• Required 2

Compute the activity rate for each of the activity cost pools.

Activity Cost Pool	Activity Rate
Labor-related		per DLH
Purchase orders		per order
Parts management		per part type
Board etching		per board
General factory		per MH

Using the ABC data, determine the total amount of overhead cost assigned to each product.

	Overhead Cost Assigned
Activity Cost Pool	Product A	Product B	Product C	Product D
Labor-related (DLHs)
Purchase orders (orders)
Parts management (part types)
Board etching (boards)
General factory (MHs)
Total