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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 | $ | 380,000 | | 38,000 | | DLHs |
| Purchase orders | Number of orders | $ | 11,935 | | 217 | | orders |
| Parts management | Number of part types | $ | 79,500 | | 106 | | part types |
| Board etching | Number of boards | $ | 93,000 | | 1,860 | | boards |
| General factory | Machine-hours | $ | 240,500 | | 18,500 | | 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 companys four products as follows:
| | Expected Activity |
| Activity Cost Pool | Product A | Product B | Product C | Product D |
| Labor-related (DLHs) | | 5,400 | | | 24,700 | | | 3,800 | | | 4,100 | |
| Purchase orders (orders) | | 51 | | | 35 | | | 48 | | | 83 | |
| Parts management (part types) | | 35 | | | 14 | | | 42 | | | 15 | |
| Board etching (boards) | | 590 | | | 730 | | | 540 | | | 0 | |
| General factory (MHs) | | 2,600 | | | 8,600 | | | 2,000 | | | 5,300 | |
| |
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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