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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 $ 23,680 1,480 DLHs
Purchase orders Number of orders $ 860 430 orders
Product testing Number of tests $ 6,205 365 tests
Template etching Number of templates $ 1,400 50 templates
General factory Machine-hours $ 39,750 7,950 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) 700 180 300 300
Purchase orders (orders) 20 150 160 100
Product testing (tests) 230 55 0 80
Template etching (templates) 0 32 10 8
General factory (MHs) 2,400 1,350 1,500 2,700

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

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