Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Applied Sciences Posted 10 Aug 2017 My Price 8.00

Rusties Company

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 $ 18,000 2,000 DLHs
Purchase orders Number of orders $ 1,050 525 orders
Product testing Number of tests $ 3,500 350 tests
Template etching Number of templates $ 700 28 templates
General factory Machine-hours $ 50,000 10,000 MHs



5.

Required:

1.

 Compute the activity rate for each of the activity cost pools.

 

Activity Cost Pool Activity Rate
Labor-related $   per DLH
Purchase orders $   per order
Product testing $   per test
Template etching $   per template
General factory $   per MH

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6.

2.

 The expected activity for the year was distributed among the company's four products as follows:

 

Activity Cost Pool Expected Activity
Product A Product B Product C Product D
Labor-related (DLHs) 500 100 700 700
Purchase orders (orders) 80 105 180 160
Product testing (tests) 200 60 0 90
Template etching (templates) 0 14 10 4
General factory (MHs) 3,400 2,200 1,800 2,600

 

 

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

 

  Total
Overhead Cost
Product A $  
Product B $  
Product C $  
Product D $  

 

Answers

Maurice Tutor
(5)
Status NEW Posted 10 Aug 2017 11:08 PM My Price 8.00

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