Exercise 4-5 Assigning Overhead to Products in ABC [LO4-2, LO4-3]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 ExpectedOverhead Cost Expected ActivityLabor-related Direct labor-hours $ 156,000 26,000 DLHsPurchase orders Number of orders $ 11,000 220 ordersParts management Number of part types $ 80,000 100 part typesBoard etching Number of boards $ 90,000 2,000 boardsGeneral factory Machine-hours $ 180,000 20,000 MHsRequired:1. Compute the activity rate for each of the activity cost pools.2. The expected activity for the year was distributed among the company’s four products as follows:Expected ActivityActivity Cost Pool Product A Product B Product C Product DLabor-related (DLHs) 6,000 11,000 4,000 5,000Purchase orders (orders) 60 30 40 90Parts management (part types) 30 15 40 15Board etching (boards) 500 900 600 0General factory (MHs) 3,000 8,000 3,000 6,000Using the ABC data, determine the total amount of overhead cost assigned to each product.