Question: Required information Skip to question [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning

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[The following information applies to the questions displayed below.]

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 companys five activity cost pools:

Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $ 24,905 1,465 DLHs
Purchase orders Number of orders $ 840 420 orders
Product testing Number of tests $ 7,600 400 tests
Template etching Number of templates $ 1,080 40 templates
General factory Machine-hours $ 46,750 9,350 MHs

2. The expected activity for the year was distributed among the companys four products as follows:

Activity Cost Pool Expected Activity
Product A Product B Product C Product D
Labor-related (DLHs) 500 165 400 400
Purchase orders (orders) 30 70 140 180
Product testing (tests) 240 65 0 95
Template etching (templates) 0 27 10 3
General factory (MHs) 3,400 1,550 1,500 2,900

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

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