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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estima 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 $ 142,500 $ 15,535 $ 65,450 $ 105,600 $ 144,000 Product A 6,700 66 27 510 3,700 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 28,500 DLHs 239 orders 85 part types 1,760 boards 18,000 MHS Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) 28 Parts management (part types) 12 Board etching (boards). 720 General factory (MHS) 7,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. Expected Activity Product B 13,000 Complete this question by entering your answers in the tabs below. Product C 4,100 48 32 530 2,500 Product D 4,700 97 14 0 4,300

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estima 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 $ 142,500 $ 15,535 $ 65,450 $ 105,600 $ 144,000 Product A 6,700 66 27 510 3,700 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 28,500 DLHs 239 orders 85 part types 1,760 boards 18,000 MHS Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) 28 Parts management (part types) 12 Board etching (boards). 720 General factory (MHS) 7,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. Expected Activity Product B 13,000 Complete this question by entering your answers in the tabs below. Product C 4,100 48 32 530 2,500 Product D 4,700 97 14 0 4,300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Rate per DLH per order per part type per board per MH Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required 1 Required 2 Activity Cost Pool 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 A Produ B Product C Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Required 1 < Required 1 Required 2 > Required 2 Assigned Product D
Transcribed Image Text:S Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Rate per DLH per order per part type per board per MH Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required 1 Required 2 Activity Cost Pool 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 A Produ B Product C Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total Required 1 < Required 1 Required 2 > Required 2 Assigned Product D
Exercise 4-5 (Algo) Assigning Overhead to Products in ABC [LO4-2, LO4-3] Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Overhead Cost $ 142,500 $ 15,535 $ 65,450 $ 105,600 $ 144,000 Product A 6,700 66 27 510 3,700 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 28,500 DLHS Product B 13,000 28 12 720 7,500 Expected Activity 239 orders 85 part types 1,760 boards 18,000 MHS Complete this question by entering your answers in the tabs below. Product C 4,100 48 32 530 2,500 Product D 4,700 97 14 0 4,300 Using the ABC data, determine the total amount of overhead cost assigned to each product.
Transcribed Image Text:Exercise 4-5 (Algo) Assigning Overhead to Products in ABC [LO4-2, LO4-3] Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates 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 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Overhead Cost $ 142,500 $ 15,535 $ 65,450 $ 105,600 $ 144,000 Product A 6,700 66 27 510 3,700 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 28,500 DLHS Product B 13,000 28 12 720 7,500 Expected Activity 239 orders 85 part types 1,760 boards 18,000 MHS Complete this question by entering your answers in the tabs below. Product C 4,100 48 32 530 2,500 Product D 4,700 97 14 0 4,300 Using the ABC data, determine the total amount of overhead cost assigned to each product.
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