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1. Compute the activity rate for each of the activity cost pools. 2.Using the ABC data, determine the total amount of overhead cost assigned to
1. Compute the activity rate for each of the activity cost pools. 2.Using the ABC data, determine the total amount of overhead cost assigned to each product. [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $22,125 $ 2,375 $ 4,640 $ 810 $58,000 Expected Activity 1,475 DLHS 475 orders 290 tests 30 templates 7,250 MHs 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHS) 475 200 400 400 Purchase orders (orders) 100 55 150 170 Product testing (tests) 60 Template etching (templates) 10 General factory (MHS) 2,100 1,450 1,600 2,100 0 170 0 60 16 4 Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Rate per DLH per order per test per template per MH Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Cost Product A Product B Product C Product D
1. Compute the activity rate for each of the activity cost pools.
2.Using the ABC data, determine the total amount of overhead cost assigned to each product.
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