How the conventional overhead cost assignments would differ

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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) . ...............

0

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.

Reference no: EM131896331

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