1. Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management...
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1. 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 Labor-related Purchase orders Expected Overhead Cost Expected Activity 2,000 DLHs 525 orders 350 tests Activity Measure Direct labor-hours $ 18,000 Number of orders $ 1,050 Product testing Number of tests $ 3,500 Template etching Number of templates $ 700 28 templates General factory Machine-hours $ 50,000 10,000 MHs The expected activity for the year was distributed among the company's two products as follows: Required: Activity Cost Pool Product A Product B Labor-related (DLHs) 500 100 I Purchase orders (orders) 80 105 Product testing (tests) 200 60 Template etching (templates) 0 14 General factory (MHS) 3,400 2,200 In class on Tuesday (1/30) we calculated the activity rates for the 5 activity cost pools shown above. Using that ABC data, determine the total amount of overhead cost assigned to each 1. 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 Labor-related Purchase orders Expected Overhead Cost Expected Activity 2,000 DLHs 525 orders 350 tests Activity Measure Direct labor-hours $ 18,000 Number of orders $ 1,050 Product testing Number of tests $ 3,500 Template etching Number of templates $ 700 28 templates General factory Machine-hours $ 50,000 10,000 MHs The expected activity for the year was distributed among the company's two products as follows: Required: Activity Cost Pool Product A Product B Labor-related (DLHs) 500 100 I Purchase orders (orders) 80 105 Product testing (tests) 200 60 Template etching (templates) 0 14 General factory (MHS) 3,400 2,200 In class on Tuesday (1/30) we calculated the activity rates for the 5 activity cost pools shown above. Using that ABC data, determine the total amount of overhead cost assigned to each
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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