[The following information applies to the questions displayed below.]
|
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 | $ | 264,000 | 30,000 | DLHs |
| Purchase orders | Number of orders | $ | 59,000 | 750 | orders |
| Product testing | Number of tests | $ | 180,000 | 1,200 | tests |
| Template etching | Number of templates | $ | 320,000 | 8,000 | templates |
| General factory | Machine hours | $ | 836,000 | 60,000 | MHs |
|
|
|||||
4. value:
12.50 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 | |
|
|
||||
check my workreferencesebook & resources
5. value:
12.50 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) | 7,600 | 10,700 | 4,100 | 9,600 |
| Purchase orders (orders) | 140 | 190 | 120 | 250 |
| Product testing (tests) | 110 | 520 | 220 | 450 |
| Template etching (templates) | 2,450 | 0 | 5,450 | 0 |
| General factory (MHs) | 12,900 | 17,500 | 13,100 | 17,500 |
|
|
||||
|
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 | $ | |
|
|
||
6 2011