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Business, 24.10.2019 18:43 maddyclark19

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 $ 142,500 28,500 dlhs purchase orders number of orders $ 15,535 239 orders parts management number of part types $ 65,450 85 part types board etching number of boards $ 105,600 1,760 boards general factory machine-hours $ 144,000 18,000 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) 6,700 13,000 4,100 4,700 purchase orders (orders) 66 28 48 97 parts management (part types) 27 12 32 14 board etching (boards) 510 720 530 0 general factory (mhs) 3,700 7,500 2,500 4,300 using the abc data, determine the total amount of overhead cost assigned to each product.

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