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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
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 $ 24,585 $ 3,270 Expected Activity 2,235 DLHS 545 orders $ 3,640 280 tests $ 1,050 $ 107,100 50 templates 11,900 MHS Exercise 4-11 (Algo) Part 2 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) Expected Activity Product A Product B Product C Product D 750 20 85 225 700 700 160 140 160 0 55 0 65 38 10 2 4,000 3,100 1,800 3,000 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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