Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $19,250 $ 1,820 $ 6,320 $ 960 $68,600 Expected Activity 1,375 DLHS 455 orders 395 tests 40 templates 9,800 MHs Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Rate per DLH per order per test per template per MH 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 $19,250 $ 1,820 $ 6, 320 $ 960 $68, 600 Expected Activity 1,375 DLHS 455 orders 395 tests 40 templates 9,800 MHS 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Product B Product C 125 3ee 65 180 Product A 650 20 250 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Product testing (tests) Template etching (templates) General factory (MHS) Product D 300 190 80 e 10 1,200 3,800 2,000 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Industrial Energy Efficiency Energy Auditing Energy Management And Policy Issues

Authors: Patrik Thollander, Magnus Karlsson, Patrik Rohdin, Johan Wollin, Jakob Rosenqvist

1st Edition

0128172479, 978-0128172476

More Books

Students also viewed these Accounting questions

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago