Business, 01.03.2021 02:20 josiesolomonn1615

Adria 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 $ 40,000 8,000 DLHs
Purchase orders Number of orders $ 7,800 3,900 orders
Material receipts Number of receipts $ 10,200 850 receipts
Relay assembly Number of relays $ 17,400 2,900 relays
General factory Machine-hours $ 220,000 44,000 MHs
Problem 4-18 Part 2
2. 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) 2,550 850 4,000 600
Purchase orders (orders) 200 500 1,560 1,640
Materials receipts (receipts) 370 174 306 0
Relay assembly (relays) 370 370 870 1,290
General factory (MHs) 17,000 2,200 8,800 16,000

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

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Adria Company recently implemented an activity-based costing system. At the beginning of the year, m...

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