Sultan Company
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3-7
Refer to the data in exercise 3-6 (above) for Sultan Company. Activities during the year were distributed across the company's four products as follows:
Actule activities
Activity cost pool Product A Product B Product C Product D
Labor related( DHL's) 6,000 10,000 4,000 5,000
Purchase orders (Orders) 60 30 20 90
Parts management (parts) 30 25 40 15
Board etching (boards) 500 900 400 0
General factory (MHs) 3,000 8,000 5,000 6,000
Required:
Compute the amount of overhead cost applied to each product during the year.
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Solution Summary
The expert examines Sultan Company activities for the year distributed across four products.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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