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Required information [The following information applies to the questions displayed below.) Adria Company recently implemented an activity-based costing system. At the beginning of the year,
Required information [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 company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Measure Direct labor-hours Number of orders Number of receipts Number of relays Machine-hours Expected Overhead Cost $ 66,500 $ 15,200 $ 10, 200 $ 28,000 $333,000 Expected Activity 9,500 DLHS 3,800 orders 850 receipts 2,800 relays 37,000 MHS Required: 1. Compute the activity rate for each of the activity cost pools. Activity Rate per DLH per order Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory per receipt per relay per MH 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 company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Measure Direct labor-hours Number of orders Number of receipts Number of relays Machine-hours Expected Overhead Cost $ 66,500 $ 15,200 $ 10, 200 $ 28,000 $333,000 Expected Activity 9,500 DLHS 3,800 orders 850 receipts 2,800 relays 37,000 MHs 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Materials receipts (receipts) Relay assembly (relays) General factory (MHS) Expected Activity Product A Product B Product C Product D 3,050 500 5, 225 725 300 650 1,710 1,140 360 133 357 0 300 300 1,008 1,192 15, 250 100 7,400 14,250 Using the ABC data, determine the total amount of overhead cost assigned to each product. Product A Product B Product C Product D
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