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 $ 268,000 30,000 DLHs
Purchase orders Number of orders $ 63,000 750 orders
Product testing Number of tests $ 182,000 1,200 tests
Template etching Number of templates $ 320,000 8,000 templates
General factory Machine-hours $ 843,000 60,000 MHs
4.
value:
10.00 points
Required:
1.
Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)
Activity Cost Pool Activity Rate
Labor-related $ per DLH
Purchase orders $ per order
Product testing $ per test
Template etching $ per template
General factory $ per MH
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5.
value:
10.00 points
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) 7,900 10,900 3,800 9,400
Purchase orders (orders) 150 220 140 190
Product testing (tests) 105 520 225 450
Template etching (templates) 2,500 0 5,400 0
General factory (MHs) 12,700 16,500 13,200 18,600
Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Total
Overhead Cost
Product A $
Product B $
Product C $
Product D $