- Sultan Company Uses An Activity Based Costing System At The Beginning Of The Year The Company Made The Following Estim 1 (40.68 KiB) Viewed 37 times
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 Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 400,000 $ 11, 150 $ 82,820 $ 73,800 $ 279,500 Expected Activity 40,000 DLHS 223 orders 101 part types 1,640 boards 21,500 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
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) Product A 6,700 63 37 300 3,900 Expected Activity Product B Product C 23,300 4,300 39 36 15 38 760 580 8,800 2,500 Product D 5, 700 85 11 0 6,300 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 Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Rate 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. Complete this
question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Activity Cost Pool Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned 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 < Required 1 Required 2