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 templates | $ | 800 | 40 | templates |
General factory | Machine-hours | $ | 46,500 | 7,750 | MHs |
2. The expected activity for the year was distributed among the company’s four products as follows:
Expected Activity | ||||
Activity Cost Pool | Product A | Product B | Product C | Product D |
Labor-related (DLHs) | 725 | 65 | 800 | 800 |
Purchase orders (orders) | 70 | 145 | 160 | 150 |
Product testing (tests) | 150 | 50 | 0 | 70 |
Template etching (templates) | 0 | 27 | 10 | 3 |
General factory (MHs) | 3,100 | 1,350 | 1,200 | 2,100 |
Using the ABC data, determine the total amount of overhead cost assigned to each product.
Activity cost pool | Expected | Expected | overhead | |||||
overhead cost | activity | rate | ||||||
labor-related | 19,120 | 2,390 | 8 | per DLH | ||||
purchase orders | 1,575 | 525 | 3 | per order | ||||
product testing | 2,430 | 270 | 9 | tests | ||||
template etching | 800 | 40 | 20 | per template | ||||
General factory | 46,500 | 7,750 | 6 | per MHS | ||||
70,425 | ||||||||
overhead assigned = overhead rate *expected activity of each product | ||||||||
product | product | product | product | |||||
A | B | C | D | |||||
labor-related | 5800 | 520 | 6400 | 6400 | ||||
purchase orders | 210 | 435 | 480 | 450 | ||||
product testing | 1350 | 450 | 0 | 630 | ||||
template etching | 0 | 540 | 200 | 60 | ||||
General factory | 18600 | 8100 | 7200 | 12600 | ||||
total overhead assigned | 25960 | 10045 | 14280 | 20140 | answer | |||
Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an...
Quiz 4 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...
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...
(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...
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 $ 43,308 $ 2,160 $ 5,700 $ 1,950 $ 68,600 Expected Activity 2,406 DLHS 540 orders 300 tests 65 templates 9,800...
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 $...
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...
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 $19,125 $ 1,660 $ 3,000 $ 1,470 $59,500 Expected Activity 2,125 DLHS 415 orders 300 tests 70 templates 8,500 MHS Exercise 4-11 Part 2 2. The expected activity for the year was distributed among the company's four products as follows: Product A 450 50 Activity Cost Pool Labor-related (DLHS) Purchase orders...
Check my work Part 1 of 2 Required Information Exercise 4-11 Contrasting Activity-Based Costing and Conventional Product Costing (LO4-2, LO4-3, LO4-4] The following information applies to the questions displayed below.) points 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: Skipped eBook Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number...
made the following estimates of cost and activity in the company s tive 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 $30, 115 $ 2,320 $ 6,930 $ 870 $ 65,100 Expected Activity 1,585 DLHS 580 orders 330 tests 30 templates 9,300 MHS 2. The expected activity for the year was distributed among the company's four...
Required information [The following information applies to the questions displayed below.] 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's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Measure Direct labor-hours Number of orders Number of receipts Number of relays Machine-hours Expected Overhead Cost $ 42,500 $ 5,600 $ 10,000 $ 14,400 $245,000 Expected...