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Required information Skip to question [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning
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[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 companys five activity cost pools:
Activity Cost Pool | Activity Measure | Expected Overhead Cost | Expected Activity | |
---|---|---|---|---|
Labor-related | Direct labor-hours | $ 21,840 | 1,820 | DLHs |
Purchase orders | Number of orders | $ 980 | 490 | orders |
Product testing | Number of tests | $ 5,330 | 410 | tests |
Template etching | Number of templates | $ 2,040 | 85 | templates |
General factory | Machine-hours | $ 57,000 | 11,400 | MHs |
2. The expected activity for the year was distributed among the companys four products as follows:
Activity Cost Pool | Expected Activity | |||
---|---|---|---|---|
Product A | Product B | Product C | Product D | |
Labor-related (DLHs) | 675 | 145 | 500 | 500 |
Purchase orders (orders) | 70 | 110 | 190 | 120 |
Product testing (tests) | 270 | 60 | 0 | 80 |
Template etching (templates) | 0 | 67 | 15 | 3 |
General factory (MHs) | 3,400 | 3,000 | 2,000 | 3,000 |
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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