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 Expected Overhead Cost Expected Activity 39,700 DLHS $ 158,800 $ 11,605 Number of part types Number of boards Machine-hours $ 90,470 $ 99,000 $ 139,300 211 orders 109 part types 1,980 boards 19,900 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 Product B Product C Product D 6,700 43 23,100 36 4,200 39 5,700 93 24 19 50 16 590 3,700 740 8,200 650 0 2,900 5,100 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 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 Expected Overhead Cost Expected Activity 39,700 DLHS $ 158,800 $ 11,605 Number of part types Number of boards Machine-hours $ 90,470 $ 99,000 $ 139,300 211 orders 109 part types 1,980 boards 19,900 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 Product B Product C Product D 6,700 43 23,100 36 4,200 39 5,700 93 24 19 50 16 590 3,700 740 8,200 650 0 2,900 5,100 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
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Required 1 To compute the activity rate for each activity cost pool we divide the expected overhead ... View the full answer
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Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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