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 $241,500 34,500 DLHs
Purchase orders Number of orders $6,060 202 orders
Parts management Number of part types $90,300 105 part types
Board etching Number of boards $69,600 1,740 boards
General factory Machine-hours $193,000 19,300 MHs
Required:
Compute the activity rate for each of the activity cost pools.
Answers: 3
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Sultan Company uses an activity-based costing system.
At the beginning of the year, the company mad...
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