Sultan Company uses an activitybased costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:
tableActivity Cost Pool,Expected,Activity Measure,tableOverhead CostExpected ActivityLaborrelated,Direct laborhours,$ DLHsPurchase orders,Number of orders,$ ordersParts management,Number of part types,$ part typesBoard etching,Number of boards,$ boardsGeneral factory,Machinehours,$ MHs
Required:
Compute the activity rate for each of the activity cost pools.
The expected activity for the year was distributed among the company's four products as follows:
tableActivity Cost Pool,Expected ActivityProduct AProduct BProduct CProduct DLaborrelated DLHsPurchase orders ordersParts management part typesBoard etching boardsGeneral factory MHs
Using the ABC data, determine the total amount of overhead cost assigned to each product.
