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Using the ABC data, determine the total amount of overhead cost assigned to each product.
Activity Cost Pool
Product A
Product B
Product C
Product D
Labor-related (DLHs) ........................
503
100
700
703
Purchase orders (orders) .....................
80
105
180
160
Product testing (tests)................................
200
60
0
90
Template etching (templates) . ...............
14
10
4
General tactccy ( hiHs) ...........................................................................................................
3,400
2,200
1,800
2.600
Assume that prior to implementing ABC, Rusties used a conventional cost system that applied all manufacturing overhead to products based on direct labor-hours. Explain how the conventional overhead cost assignments would differ from the activity-based cost assignments with respect to Product B.
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