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: Expected Overhead 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 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: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Expected Activity Product A Product B Product C Product D 16,100 29 4,400 74 25 430 3,300 50 44 530 3,600 5,400 81 18 750 8,100 13 3,300 6,500 Using the ABC data, determine the total amount of overhead cost assigned to each product.

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: Expected Overhead 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 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: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Expected Activity Product A Product B Product C Product D 16,100 29 4,400 74 25 430 3,300 50 44 530 3,600 5,400 81 18 750 8,100 13 3,300 6,500 Using the ABC data, determine the total amount of overhead cost assigned to each product.

Name: Expected ActivityProduct A Product B Product C Product DActivity Cost
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Expected ActivityProduct A Product B Product C Product DActivity Cost PoolLabor-related (DLHS)Purchase orders (orders)Parts management (part types)Board etching (boards)General factory (MHs)4,40074254303,30016,10029183,30050445303,6005,40081137508,1

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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