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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: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $28,050 $ 2,100 $ 4, 420 $ 1,250 $ 81,600 Expected Activity 1,870 DLHS 420 orders 260 tests 50 templates 10, 200 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) Product testing (tests Template etching (templates) General factory (MHS) Product A 700 80 130 0 3,800 Expected Activity Product B Product C 170 500 60 130 55 0 36 10 2,100 1,500 Product D 500 150 75 4 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Cost Product A Product B Product C Product D
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