Question

Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an...

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.

0 0
Add a comment Improve this question Transcribed image text
Answer #1
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
Add a comment
Know the answer?
Add Answer to:
Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Quiz 4 Required information [The following information applies to the questions displayed below.] Rusties Company recently...

    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...

    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...

    (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...

    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...

    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...

    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...

    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...

    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:...

    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...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT