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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: |
|
Activity Cost Pool |
Activity |
Expected |
Expected |
||
|
Labor related |
Direct labor hours |
$ |
175,000 |
35,000 |
DLHs |
|
Purchase orders |
Number of orders |
$ |
64,710 |
900 |
orders |
|
Material receipts |
Number of receipts |
$ |
162,400 |
1,400 |
receipts |
|
Relay assembly |
Number of relays |
$ |
309,750 |
10,500 |
relays |
|
General factory |
Machine hours |
$ |
735,000 |
70,000 |
MHs |
value:
8.00 points
| 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) | 5,700 | 7,300 | 10,150 | 8,850 |
| Production orders (orders) | 145 | 305 | 85 | 415 |
| Material receipts (receipts) | 370 | 165 | 205 | 560 |
| Relay assembly (relay) | 0 | 4,350 | 0 | 7,150 |
| General factory (MHs) | 10,400 | 19,400 | 16,700 | 21,500 |
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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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