Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estim

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estim

Post by answerhappygod »

Sultan Company Uses An Activity Based Costing System At The Beginning Of The Year The Company Made The Following Estim 1
Sultan Company Uses An Activity Based Costing System At The Beginning Of The Year The Company Made The Following Estim 1 (171.55 KiB) Viewed 13 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 $ 254,800 $ 8,785 $ 72,680 $ 54,900 $ 170,000 Product A 4,000 78 37 530 3,200 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: Expected Activity 36,400 DLHS Product B 22,200 251 orders 92 part types Expected Activity 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. 28 12 700 6,000 1,830 boards 17,000 MHS Complete this question by entering your answers in the tabs below. Product C Product D 4,900 50 31 600 2,100 5,300 95 12 0 5,700
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 Activity Rate per DLH per order per part type per board per MH Labor-related Purchase orders Parts management Board etching General factory < 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. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Product B Assigned Product C Assigned Product D Product A Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total < Required 1 Required 2 >
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply