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Required information [The following information applies to the questions displayed below.] Rusties 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.] 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 company's five activity cost pools: Expected Overhead Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Cost $36,380 $ 1,440 $ 6,210 Number of templates Machine-hours $ 1,450 $42,600 Expected Activity 2,140 DLHS 480 orders 345 tests 50 templates 7,100 MHS 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHS) Purchase orders (orders) Product testing (tests) Template etching (templates) Expected Activity 675 65 700 700 60 150 100 170 220 50 0 75 0 38 10 2 2,500 1,700 1,200 1,700 General factory (MHS) Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Product A Product B Product C Product D Cost
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