Sultan
Company uses an activity-based costing system. At thebeginning of the year, the
company made the following estimates ofcost and activity for its five activity cost pools:
Required:
1. Compute the activity rate for each of the activity costpools.
2. The expected activity for the year was distributed among thecompany’s four products as follows:
- Sultan Company Uses An Activity Based Costing System At The Beginning Of The Year The Company Made The Following Estim 1 (42.24 KiB) Viewed 12 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 Required 1 Required 2 Expected Overhead Cost $ 380,000 $ 11,935 $ 79,500 $ 93,000 $ 240,500 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: Product A 5,400 51 35 590 2,600 Labor-related Purchase orders Parts management Board etching General factory Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Using the ABC data, determine the total amount of overhead cost assigned to each product. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate per DLH per order per part type per board per MH Complete this
question by entering your answers in the tabs below. Expected Activity Product B 24,700 Expected Activity 38,000 DLHS 35 14 730 8,600 217 orders 106 part types 1,860 boards 18,500 MHS Dami Product C 3,800 48 42 540 2,000 Product D 4,100 83 15 0 5,300
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 Assigned Assigned Product A Product C Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total Assigned Product B Assigned Product D