Adria 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 companys five activity cost pools:
|
Activity Cost Pool
|
Activity
Measure
|
Expected
Overhead Cost
|
Expected
Activity
|
|
Labor-related
|
Direct labor-hours
|
$
|
171,500
|
35,000
|
DLHs
|
|
Purchase orders
|
Number of orders
|
$
|
67,500
|
900
|
orders
|
|
Material receipts
|
Number of receipts
|
$
|
159,320
|
1,400
|
receipts
|
|
Relay assembly
|
Number of relays
|
$
|
303,450
|
10,500
|
relays
|
|
General factory
|
Machine-hours
|
$
|
812,000
|
70,000
|
MHs
|
|
1. Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.)
| Activity Cost Pool |
Activity Rate |
| Labor-related |
$ |
per DLH |
| Purchase orders |
$ |
per order |
| Material receipts |
$ |
per receipt |
| Relay assembly |
$ |
per relay |
| General factory |
$ |
per MH |
2. The expected activity for the year was distributed among the company's four products as follows:
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.)
Product A $
Product B $
Product C $
Product D $