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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 $ 30,115 $ 2,320 $ 6,930 $ 870 $ 65,100 Expected Activity 1,585 DLHS 580 orders 330 tests 30 templates 9,300 MHS Required: 1. Compute the activity rate for each of the activity cost pools. Activity Rate Activity Cost Pool Labor-related per DLH Purchase orders per order per test Product testing Template etching General factory per template per MH 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 $30, 115 $ 2,320 $ 6,930 $ 870 $ 65, 100 Expected Activity 1,585 DLHS 580 orders 330 tests 30 templates 9, 300 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 625 30 190 0 3,600 Expected Activity Product B Product c 160 400 190 170 55 0 17 10 1,700 1,700 Product D 400 190 85 3 2,300 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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