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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
Activity?Measure
Expected?Overhead Cost
Expected?Activity
Labor-related
Direct labor-hours
$
35,000
7,000
DLHs
Purchase orders
Number of orders
4,000
2,000
orders
Material receipts
Number of receipts
10,450
950
receipts
Relay assembly
Number of relays
1,000
relays
General factory
Machine-hours
240,000
40,000
MHs
The expected activity for the year was distributed among the company's four products as follows:
Expected Activity
Product A
Product B
Product C
Product D
Labor-related (DLHs)
2,400
500
3,500
600
Purchase orders (orders)
100
350
800
750
Materials receipts (receipts)
400
208
342
0
Relay assembly (relays)
170
300
360
General factory (MHs)
12,000
8,000
13,000
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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