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

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	Activity Measure	Expected Overhead Cost		Expected Activity
Labor-related	Direct labor-hours	$	30,115	1,585	DLHs
Purchase orders	Number of orders	$	2,320	580	orders
Product testing	Number of tests	$	6,930	330	tests
Template etching	Number of templates	$	870	30	templates
General factory	Machine-hours	$	65,100	9,300	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 B	Product C	Product D
Labor-related (DLHs)	625	160	400	400
Purchase orders (orders)	30	190	170	190
Product testing (tests)	190	55	0	85
Template etching (templates)	0	17	10	3
General factory (MHs)	3,600	1,700	1,700	2,300

	Total Overhead Cost
Product A
Product B
Product C
Product D

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ekkarill92 answered 1 year ago

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