Using the ABC data, determine the total amount of overhead cost assigned to each product.
|
Activity Cost Pool
|
Product A
|
Product B
|
Product C
|
Product D
|
|
Labor-related (DLHs) ........................
|
503
|
100
|
700
|
703
|
|
Purchase orders (orders) .....................
|
80
|
105
|
180
|
160
|
|
Product testing (tests)................................
|
200
|
60
|
0
|
90
|
|
Template etching (templates) . ...............
|
0
|
14
|
10
|
4
|
|
General tactccy ( hiHs) ...........................................................................................................
|
3,400
|
2,200
|
1,800
|
2.600
|
Assume that prior to implementing ABC, Rusties used a conventional cost system that applied all manufacturing overhead to products based on direct labor-hours. Explain how the conventional overhead cost assignments would differ from the activity-based cost assignments with respect to Product B.