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 Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,800 30,800 DLHs Purchase orders Number of orders $ 6,900 230 orders Parts management Number of part types $ 81,120 104 part types Board etching Number of boards $ 45,000 1,800 boards General factory Machine-hours $ 150,300 16,700 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 Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,000 14,300 4,400 5,100 Purchase orders (orders) 58 26 46 100 Parts management (part types) 30 18 37 19 Board etching (boards) 500 720 580 0 General factory (MHs) 3,600 6,400 2,100 4,600   Using the ABC data, determine the total amount of overhead cost assigned to each product.

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Chapter1: Financial Statements And Business Decisions
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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 Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $ 184,800 30,800 DLHs
Purchase orders Number of orders $ 6,900 230 orders
Parts management Number of part types $ 81,120 104 part types
Board etching Number of boards $ 45,000 1,800 boards
General factory Machine-hours $ 150,300 16,700 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 Expected Activity
Product A Product B Product C Product D
Labor-related (DLHs) 7,000 14,300 4,400 5,100
Purchase orders (orders) 58 26 46 100
Parts management (part types) 30 18 37 19
Board etching (boards) 500 720 580 0
General factory (MHs) 3,600 6,400 2,100 4,600

 

Using the ABC data, determine the total amount of overhead cost assigned to each product.

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
Assigned
Product C
Assigned
Product D
Product A
Product B
Activity Cost Pool
Labor-related (DLHS)
Purchase orders (orders)
Parts management (part types)
Board etching (boards)
General factory (MHs)
Total
$
0 $
0
$
0
$
0
Transcribed Image Text: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 Assigned Product C Assigned Product D Product A Product B Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total $ 0 $ 0 $ 0 $ 0
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 >
Transcribed Image Text: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 >
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