Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management...
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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 company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Expected Overhead Activity Measure Cost Direct labor-hours $ 19,250 Number of orders $ 1,820 Number of tests $ 6,320 Number of templates $ 960 Machine-hours $ 68,600 Expected Activity 1,375 DLHs 455 orders 395 tests 40 templates 9,800 MHs 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Product A Product B Product C Product D 650 125 300 300 180 190 250 65 80 26 10 3,800 2,000 1,200 2,800 20 Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Product testing (tests) Template etching (templates) General factory (MHs) 65 Using the ABC data, determine the total amount of overhead cost assigned to each product. Total Overhead Cost Product A Product B Product C Product D
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