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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:
Required Information [The following information applies to the questions displayed below.) 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 $25,600 $ 3,090 $ 6,030 $ 1,430 $68,400 Expected Activity 1, 600 DLHS 515 order: aas tests 55 templates 7,600 MHS 2 The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product A Product Product C Product D Labor-related (DLHS) 675 125 400 400 Purchase orders (orders) 20 215 140 120 Product Desting tests) 200 60 75 Template etching (templates) 37 15 3 General factory (M) 2,700 2,000 1,600 1,300 0 Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Cost Product A Product Product C Product DStep by Step Solution
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