Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the
Question:
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:
Using the ABC data, determine the total amount of overhead cost assigned to each product.
Transcribed Image Text:
Activity MeasureOverhead CostAtivity Expected Expected Activity Cost Pool Labor-related Purchase orders.. _ . . . . _ .. . .Number of orders $156,000 $11,000 $80,000 $90,000 $180,000 26,000 DLHs 220 ordersS Number of part types 100 part types 2,000 boards 20,000 MHs Expected Activity Activity Cost Pool Product A Product B Product C Product D 6,000 60 30 500 3,000 5,000 90 15 0 6,000 Labor-related (DLHs) 11,000 30 15 900 8,000 4,000 40 40 600 3,000 General factory (MHs)
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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