Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing [LO4-2, LO4-3, LO4-4]

[The following information applies to the questions displayed below.]

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	$	58,500	6,500	DLHs
Purchase orders	Number of orders	$	12,000	2,400	orders
Material receipts	Number of receipts	$	11,200	700	receipts
Relay assembly	Number of relays	$	14,000	1,400	relays
General factory	Machine-hours	$	369,000	41,000	MHs

Problem 4-18 Part 1

Required:

1. Compute the activity rate for each of the activity cost pools.

Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing [LO4-2, LO4-3, LO4-4]

[The following information applies to the questions displayed below.]

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	$	58,500	6,500	DLHs
Purchase orders	Number of orders	$	12,000	2,400	orders
Material receipts	Number of receipts	$	11,200	700	receipts
Relay assembly	Number of relays	$	14,000	1,400	relays
General factory	Machine-hours	$	369,000	41,000	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)	2,400	700	2,600	800
Purchase orders (orders)	500	850	720	330
Materials receipts (receipts)	400	118	182	0
Relay assembly (relays)	340	340	280	440
General factory (MHs)	16,250	5,400	4,100	15,250

Using the ABC data, determine the total amount of overhead cost assigned to each product.