Determine total amount of overhead cost assigned to product

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Reference no: EM13328715

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	$	262,000	30,000	DLHs
Purchase orders	Number of orders	$	63,000	750	orders
Product testing	Number of tests	$	181,000	1,200	tests
Template etching	Number of templates	$	320,000	8,000	templates
General factory	Machine-hours	$	838,000	60,000	MHs

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)	8,000	10,700	3,800	9,500
Purchase orders (orders)	150	210	140	200
Product testing (tests)	95	460	235	510
Template etching (templates)	2,250	0	5,650	0
General factory (MHs)	12,800	16,500	13,300	18,400

Using the ABC data, determine the total amount of overhead cost assigned to each product.

Reference no: EM13328715

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