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Exercise 4-11 Contrasting Activity-Based Costing and Conventional Product Costing (L04-2, L04-3, L04- 4) The following information applies to the questions displayed below.) Rustles Company recently
Exercise 4-11 Contrasting Activity-Based Costing and Conventional Product Costing (L04-2, L04-3, L04- 4) The following information applies to the questions displayed below.) Rustles 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 Turchase 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 $24,905 $ 840 57.600 $ 1,080 $46,750 Expected Activity 1,465 DLHS 420 order. 400 tests 40 templates 9,350 MB Exercise 4-11 Part 2 2. The expected activity for the year was distributed among the company's four products as follows: Expected netivity activity Cost Pool Product Products Products Product D Labor-related (DLS) 500 165 400 400 Purchase orders (orders) 30 70 140 180 Product testing tests) 240 65 0 95 Template etching (templacha) 27 10 3 General factory (MES) 3,400 1.550 1,500 2.900 0 Using the ABC data, determine the total amount of overhead cost assigned to each product
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