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  3. sultan company uses an activity-based costing syst

Sultan Company uses an activity-based costing system. At the beginning of the year, the company...

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Accounting

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 $ 284,000 35,500 DLHs Purchase orders Number of orders $ 6,790 194 orders Parts management Number of part types $ 71,340 82 part types Board etching Number of boards $ 57,900 1,930 boards General factory Machine-hours $ 229,900 20,900 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 companys four products as follows: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 3,000 22,800 3,900 5,800 Purchase orders (orders) 43 20 48 83 Parts management (part types) 22 15 32 13 Board etching (boards) 530 750 650 0 General factory (MHs) 3,600 7,300 3,900 6,100 Using the ABC data, determine the total amount of overhead cost assigned to each product

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