Sultan Company uses an activity-based costing system. At the beginning of the year, the company made...
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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 Cost Expected Activity 39,700 DLHS $ 317,600 $ 9,900 $ 67,890 $ 76,000 $ 237,600 220 orders 93 part types 1,900 boards 21,600 MHS 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: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A 6,300 70 Product B 23,700 Product C 4,600 Product D 5,100 27 40 83 28 580 3,900 13 700 8,900 32 20 620 3,500 5,300 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 Rate Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory per DLH per order per part type per board per MH < 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 $ 0 $ 0 $ 0 $ 0 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 Cost Expected Activity 39,700 DLHS $ 317,600 $ 9,900 $ 67,890 $ 76,000 $ 237,600 220 orders 93 part types 1,900 boards 21,600 MHS 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: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A 6,300 70 Product B 23,700 Product C 4,600 Product D 5,100 27 40 83 28 580 3,900 13 700 8,900 32 20 620 3,500 5,300 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 Rate Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory per DLH per order per part type per board per MH < 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 $ 0 $ 0 $ 0 $ 0
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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