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Problem 4 - 1 8 Contrasting Activity - Based Costing and Conventional Product Costing [ LO 4 - 2 , LO 4 - 3 ,

Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing [LO4-2, LO4-3, LO4-4]
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Adria 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 companys five activity cost pools:
Activity Cost Pool Activity
Measure Expected
Overhead Cost Expected
Activity
Labor-related Direct labor-hours $ 34,0008,500 DLHs
Purchase orders Number of orders $ 3,5003,500 orders
Material receipts Number of receipts $ 9,000900 receipts
Relay assembly Number of relays $ 15,0002,500 relays
General factory Machine-hours $ 205,00041,000 MHs
Problem 4-18 Part 2
2. 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
Labor-related (DLHs)2,5506503,4001,900
Purchase orders (orders)2505001,7501,000
Materials receipts (receipts)3101764140
Relay assembly (relays)2002001,0001,100
General factory (MHs)12,7508,3008,20011,750
Using the ABC data, determine the total amount of overhead cost assigned to each product.

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