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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 companys five activity cost pools:

Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $ 25,600 1,600 DLHs
Purchase orders Number of orders $ 3,090 515 orders
Product testing Number of tests $ 6,030 335 tests
Template etching Number of templates $ 1,430 55 templates
General factory Machine-hours $ 68,400 7,600 MHs

2. The expected activity for the year was distributed among the companys four products as follows:

Expected Activity
Activity Cost Pool Product A Product B Product C Product D
Labor-related (DLHs) 675 125 400 400
Purchase orders (orders) 30 215 140 130
Product testing (tests) 200 60 0 75
Template etching (templates) 0 37 15 3
General factory (MHs) 2,700 2,000 1,600 1,300

Using the ABC data, determine the total amount of overhead cost assigned to each product.

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