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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 company%u2019s five activity cost pools: |
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Activity Cost Pool |
Activity |
Expected |
Expected |
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|
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: |
| Expected Activity | ||||
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| Activity Cost Pool | Product A | Product B | Product C | Product D |
| Labor related (DLHs) | 5,600 | 7,500 | 10,050 | 8,850 |
| Production orders (orders) | 145 | 300 | 100 | 405 |
| Material receipts (receipts) | 440 | 170 | 210 | 480 |
| Relay assembly (relay) | 0 | 4,350 | 0 | 7,150 |
| General factory (MHs) | 9,100 | 20,000 | 17,000 | 21,900 |
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| 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 | $ |
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