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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 $ 23,980 2,180 DLHs
Purchase orders Number of orders $ 530 530 orders
Product testing Number of tests $ 4,200 350 tests
Template etching Number of templates $ 1,035 45 templates
General factory Machine-hours $ 34,400 8,600 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) 625 155 700 700
Purchase orders (orders) 100 160 120 150
Product testing (tests) 190 65 0 95
Template etching (templates) 0 23 15 7
General factory (MHs) 2,500 1,200 2,000 2,900

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

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