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Rustiest 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

Rustiest 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 PoolActivity Measure Expected Expected

Overhead Cost Activity

Labor relatedDirect labor hours $30,115 1,585 DLHs

Purchase ordersNumber of orders $2,320 580 orders

Product testingNumber of tests $6,930 330 test

Template etching Number of templates $870 30 templates

General factoryMachine hours $65,100 9,300 MHs

Required:

1. Compute the activity rate for each of the activity cost pools.

Activity Cost Pool

Labor related per DLH?

Purchase orders per order?

Product testing per test?

Template etching per template?

General factory per MH?

2. The expected activity for the year was distributed among the company's four products as follows:

Activity cost poolExpected Activity

Product AProduct BProduct CProduct D

Labor related (DLHs) 625160400400

Purchase orders (orders)30190170 190

Product testing (test)19055085

Template etching (templates) 01710 3

General factory (MHs)3,6001,7001,700 2,300

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

Product A?

Product B?

Product C?

Product D?

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