FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Expected Activity
Product A Product B Product C Product D
Activity Cost Pool
Labor-related (DLHS)
Purchase orders (orders)
Parts management (part types)
Board etching (boards)
General factory (MHs)
4,400
74
25
430
3,300
16,100
29
18
3,300
50
44
530
3,600
5,400
81
13
750
8,100
6,500
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
Labor-related
per DLH
Purchase orders
per order
Parts management
Board etching
per part type
per board
General factory
per MH
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Transcribed Image Text:Expected Activity Product A Product B Product C Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) 4,400 74 25 430 3,300 16,100 29 18 3,300 50 44 530 3,600 5,400 81 13 750 8,100 6,500 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 Labor-related per DLH Purchase orders per order Parts management Board etching per part type per board General factory per MH
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
$ 233,600
$ 9,360
$ 80,000
$59,850
$ 236,500
Expected Activity
29,200 DLHS
234 orders
100 part types
1,710 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:
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
4,400
74
25
430
3,300
16,100
29
3,300
50
44
530
5,400
81
13
18
750
8,100
3,600
6,500
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.
Dauind 1
expand button
Transcribed Image Text: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 $ 233,600 $ 9,360 $ 80,000 $59,850 $ 236,500 Expected Activity 29,200 DLHS 234 orders 100 part types 1,710 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: 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 4,400 74 25 430 3,300 16,100 29 3,300 50 44 530 5,400 81 13 18 750 8,100 3,600 6,500 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. Dauind 1
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