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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates
Sultan Company uses an activity-based costing system, At the beginning of the year, the company made the following estimates
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Calculation of Activity rate for each of the activity cost pools

Activity Cost Pool Activity Rate (Exppected O/H / Expected activity)
Labour-Related

6 per DLH

(184800 / 30800)

Purchase order

30 per order

(6900 / 230)

Parts Management

780 per Type

(81120 / 104)

Board etching

25 per Board

(45000 / 1800)

General Factory

9 per MH

(150300 / 16700)

Amount of Overhead cost assign to each product

Activity Cost Pool Product A Product B Product C Product D
Labour-Related

42000

(6 x 7000)

85800

(6 x 14300)

26400

(6 x 4400)

30600

(6 x 5100)

Purchase order

1740

(30 x 58)

780

(30 x 26)

1380

(30 x 46)

3000

(30 x 100)

Parts Management

23400

(780 x 30)

14040

(780 x 18)

28860

(780 x 37)

14820

(780 x 19)

Board etching

12500

(25 x 500)

18000

(25 x 720)

12500

(25 x 500)

0

(25 x 0)

General Factory

32400

(9 x 3600)

57600

(9 x 6400)

18900

(9 x 2100)

41400

(9 x 4600)

Total 112040 176220 88040 89820
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