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Problem 4 - 1 8 Contrasting Activity - Based Costing and Conventional Product Costing [ LO 4 - 2 , LO 4 - 3 ,
Problem Contrasting ActivityBased Costing and Conventional Product Costing LO LO LO Skip to question The following information applies to the questions displayed below. Adria Company recently implemented an activitybased costing system. At the beginning of the year, management made the following estimates of cost and activity in the companys five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Laborrelated Direct laborhours $ DLHs Purchase orders Number of orders $ orders Material receipts Number of receipts $ receipts Relay assembly Number of relays $ relays General factory Machinehours $ MHs Problem Part The expected activity for the year was distributed among the companys four products as follows: Expected Activity Activity Cost Pool Product A Product B Product C Product D Laborrelated DLHs Purchase orders orders Materials receipts receipts Relay assembly relays General factory MHs Using the ABC data, determine the total amount of overhead cost assigned to each product.
Problem Contrasting ActivityBased Costing and Conventional Product Costing LO LO LO
Skip to question
The following information applies to the questions displayed below.
Adria Company recently implemented an activitybased costing system. At the beginning of the year, management made the following estimates of cost and activity in the companys five activity cost pools:
Activity Cost Pool Activity
Measure Expected
Overhead Cost Expected
Activity
Laborrelated Direct laborhours $ DLHs
Purchase orders Number of orders $ orders
Material receipts Number of receipts $ receipts
Relay assembly Number of relays $ relays
General factory Machinehours $ MHs
Problem Part
The expected activity for the year was distributed among the companys four products as follows:
Expected Activity
Activity Cost Pool Product A Product B Product C Product D
Laborrelated DLHs
Purchase orders orders
Materials receipts receipts
Relay assembly relays
General factory MHs
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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