Solution:
The total amount of overhead cost allocated to -
(i) Product A = $30,115*625/1,585 + $2,320*30/580 + $6,930*190/330 + $870*0/30 + $65,100*3,600/9,300 = $41,185
(ii) Product B = $30,115*160/1,585 + $2,320*190/580 + $6,930*55/330 + $870*17/30 + $65,100*1,700/9,300 = $17,348
(iii) Product C = $30,115*400/1,585 + $2,320*170/580 + $6,930*0/330 + $870*10/30 + $65,100*1,700/9,300 = $20,470
(iv) Product D = $30,115*400/1,585 + $2,320*190/580 + $6,930*85/330 + $870*3/30 + $65,100*2,300/9,300 = $26,332
made the following estimates of cost and activity in the company s tive activity cost pools:...
(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 Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $ 23,980 $ 530 $ 4,200 $ 1,035 $ 34,400 Expected Activity...
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Required information [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 $ 19,120 2,390 DLHs Purchase orders Number of orders $ 1,575 525 orders Product testing Number of tests $ 2,430 270 tests Template etching Number of...
Required information [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 Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $ 28,050 $ 2,100 $ 4,420 $ 1,250 $81,600 Expected...
Check my work Required information [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 Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $ 28,050 $ 2,100 $ 4,420 $...
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