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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 $ 27,020 1,930 DLHs
Purchase orders Number of orders $ 2,160 540 orders
Product testing Number of tests $ 4,575 305 tests
Template etching Number of templates $ 780 30 templates
General factory Machine-hours $ 68,600 9,800 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) 625 105 600 600
Purchase orders (orders) 100 140 130 170
Product testing (tests) 170 55 0 80
Template etching (templates) 0 16 10 4
General factory (MHs) 3,200 2,300 1,600 2,700

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

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