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1 question 2 parts Required Information [The following information applies to the questions displayed below) Rusties Company recently implemented an activity based costing system. At
1 question 2 parts
Required Information [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 Cast 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 $ 43,388 $ 2,160 $ 5,760 $ 1,950 $ 68,600 Expected Activity 2,486 DUH 540 orders 30 tests 65 templates 9,800 Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Actilty at per DLH per order per test per template per MH Product testing Template etching General factory Labor-related Purchase orders Product testing Template etching General factory Direct labor-hours Number of orders Number of tests Number of templates Machine-hours 3.43,388 $ 2,160 $ 5,700 $ 1,950 $ 68,600 2,486 DLHS 548 orders 300 tests 65 templates 9,800 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 Products Product C Product D Labor-related (DLHS) 650 156 BB ROB Purchase orders (orders) 100 170 120 150 Product testing (tests) 170 60 9 70 Template etching templates) D 46 15 General factory (MHS) 3,300 3,000 2,600 1,500 Using the ABC data, determine the total amount of overhead cost assigned to each product Total Overload Product A Product B Product C Product D Step by Step Solution
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