Calculate activity rates for each of the three cost pools

Assignment Help Accounting Basics

Reference no: EM131983680

Problem

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 VS Expected Activity

Labor-related Direct labor-hours $ 314,000 31,400 DLHs

Purchase orders Number of orders $ 10,215 227 orders

Parts management Number of part types $ 98,790 111 part types

Board etching Number of boards $ 70,800 1,770 boards

General factory Machine-hours $ 223,600 17,200 MHs

Required:

1. Compute the activity rate for each of the activity cost pools.

Reference no: EM131983680

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