Question

Rustles 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 $ 24,585 $ 3.270 $ 3,640 $ 1,050 $ 107,100 Expected Activity 2,235 DLHs 545 orders 280 tests 50 templates 11,900 MHS

Answer 1

classmate Date Page - Anl 1. Computation Activity Rate for each activity Activity Cost Pool Activity Rate Labour Related purchase order Product Testing Template etching treneral factory $ 11 per D'LH $ 6 per order Per Test Per Template $9 per mH $ 13 Statement of Acitivity rate for each Activity Labour Purchase Prod. Template crenersal Retateed boder (4) Activity Teeting etching I factory B) overhead Lost 24585 3270 3640 loso 107100 No. of No. of DL (c) Activity measure machine Templete o Activity volume 2235 545 280 so 11900 E Activity Rate (BD) 1). 6 13 9 No. of the orders Tests al Calculation of Total overhead lost Total overhead lost Product A $ 46450 Product B $ 31698 Product c $ 25070 Product D $36867 cs manned with Camscanner

Pago Product A Labour Related .750 X 1 " Purchase orders 20 x 6 Product Telting Template etching oxal trenersal factory Modox '9 1 8250 120 2080 160 x 13 360oo 46450 Total OH COST $ Boduct B Labour Related 85 l Purchase order 225 x 6 Product Testing 55X13 Template etching 38x21 treneral factory 3100 x 9 $ 935 1350 715 798 27900 31698 Totoy oly Cost $ 7700 960 210 ० 16200 $ 385070 Producto Labour Related 700 X 1 Purchase order 160 x 6 Product Testing X 13 Temprate etching to veneral fac. 1800 X 9 Total 0/4 LOST BoductD 740 X 11 140 x 6 prochase order Boduct Testing X 13 2 X Template etching wrencsal factory 3000 Total '0lH LOST $ Labour related 65 8140 840 845 42 27000 2 9 36867 CS od with Cameonner