Determine total amount of overhead cost assigned to product

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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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