Question

Adna 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: Atiraty Cort Pool Labor related Purchase orders Material receiptis Relay insembly General factory Activity Measure Direct laborhoues Number of ondern Number of receipt Number of relay Machine-hours Expected Overhead Cont $ 63,000 $ 9,300 $ 12,750 $ 23,100 $390,000 Expected λατινY 7,000 DLS 8,100 order 850 receipts 2,100 relay 39,000 Mars Problem 4-18 Part 2 2 The expected activity for the year was distributed among the company's four products as follows: hebivity Cost Pool Labor-related DL Parchase order orders Materiais receipt. recepte Relay assembly txelen General factory Expected EVLET Produs Product Product Product D 2,800 900 2,200 300 500 790 930 920 360 269 221 0 250 1180 14.000 6,150 3,850 18,000 Using the ABC data, determine the total amount of overhead cost assigned to each product

Adria company recently implemented in activity-based costing system at the beginning of the year management made the following estimate of cost and activity in the companies five activity cost pause part to the expected activity for the year was distributed among the companies for products as follows using the ABC data determine the total amount of overhead costs assign to each product please give me the answers for product A,B,C and D. thank you

Answer 1

Calculate activity rate as shown below:
	Overhead costs	Activity volume	Activity rate
Labor related	$63,000	7000	$9.00	per DLHs
Purchase orders	$9,300	3100	$3.00	per order
Material receipts	$12,750	850	$15.00	per receipts
Relay assembly	$23,100	2100	$11.00	per relays
General factory	$390,000	39000	$10.00	per machine hour
Calculate costs assigned to each product as shown below:
Activity cost pool	Product A	Product B	Product C	Product D
Labor related	$25,200	$8,100	$25,200	$4,500
	2800*9	900*9	2800*9	500*9
Purchase orders	$1,500	$2,250	$2,790	$2,760
	500*3	750*3	930*3	920*3
Material receipts	$5,400	$4,035	$3,315	$0
	360*15	269*15	221*15
Relay assembly	$2,750	$2,750	$4,620	$12,980
	250*11	250*11	420*11	1180*11
General factory	$140,000	$61,500	$58,500	$130,000
	14000*10	6150*10	5850*10	13000*10
Total costs assigned	$174,850	$78,635	$94,425	$150,240