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 |
$ |
262,000 |
30,000 |
DLHs |
| Purchase orders |
Number of orders |
$ |
63,000 |
750 |
orders |
| Product testing |
Number of tests |
$ |
181,000 |
1,200 |
tests |
| Template etching |
Number of templates |
$ |
320,000 |
8,000 |
templates |
| General factory |
Machine-hours |
$ |
838,000 |
60,000 |
MHs
|
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) |
8,000 |
10,700 |
3,800 |
9,500 |
| Purchase orders (orders) |
150 |
210 |
140 |
200 |
| Product testing (tests) |
95 |
460 |
235 |
510 |
| Template etching (templates) |
2,250 |
0 |
5,650 |
0 |
| General factory (MHs) |
12,800 |
16,500 |
13,300 |
18,400 |
Using the ABC data, determine the total amount of overhead cost assigned to each product.