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 Expected Overhead Cost $ 158,800 Number of orders $ 11,605 Number of part types $ 90,470 Number of boards Machine-hours $ 99,000 $ 139,300 Expected Activity 39,700 DLHS 211 orders 109 part types 1,980 boards 19,900 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 Product A Product B Product C Product D Labor-related (DLHS) Purchase orders (orders) 6,700 43 23,100 36 4,200 39 5,700 93 Parts management (part types) 24 19 50 16 Board etching (boards) 590 740 650 0 General factory (MHS) 3,700 8,200 2,900 5,100 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 Labor-related Activity Rate per DLH Purchase orders Parts management Board etching General factory per order per part type per board 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 Expected Overhead Cost $ 158,800 Number of orders $ 11,605 Number of part types $ 90,470 Number of boards Machine-hours $ 99,000 $ 139,300 Expected Activity 39,700 DLHS 211 orders 109 part types 1,980 boards 19,900 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 Product A Product B Product C Product D Labor-related (DLHS) Purchase orders (orders) 6,700 43 23,100 36 4,200 39 5,700 93 Parts management (part types) 24 19 50 16 Board etching (boards) 590 740 650 0 General factory (MHS) 3,700 8,200 2,900 5,100 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 Labor-related Activity Rate per DLH Purchase orders Parts management Board etching General factory per order per part type per board per MH
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
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
Expected
Overhead Cost
$ 158,800
Number of orders
$ 11,605
Number of part types
$ 90,470
Number of boards
Machine-hours
$ 99,000
$ 139,300
Expected Activity
39,700 DLHS
211 orders
109 part types
1,980 boards
19,900 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
Product A
Product B Product C Product D
Labor-related (DLHS)
Purchase orders (orders)
6,700
43
23,100
36
4,200
39
5,700
93
Parts management (part types)
24
19
50
16
Board etching (boards)
590
740
650
0
General factory (MHS)
3,700
8,200
2,900
5,100
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
Labor-related
Activity Rate
per DLH
Purchase orders
Parts management
Board etching
General factory
per order
per part type
per board
per MH
<Required 1
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.