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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
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 Cost $21,840 $ 980 $ 5,330 $ 2,040 Expected Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Activity Direct labor-hours Number of orders Number of tests Number of templates Machine-hours 1,820 DLHs 490 orders 410 tests 85 templates $57,000 11,400 MHs 2. The expected activity for the year was distributed among the company's four products as follows Expected Activit Activity cost Pool Labor-related (DLHs) Purchase orders (orders) Product testing (tests) Template etching (templates) General factory (MHs) ProductA Product B Product C Product D 675 70 270 145 110 60 500 190 500 120 80 3,400 3,000 2,000 3,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Cost Product A Product B ProductC ProductD
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