Exercise 3-11 Contrasting Activity-Based Costing and Conventional Product Costin
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Question
Exercise 3-11 Contrasting Activity-Based Costing and Conventional Product Costing [LO3-2, LO3-3, LO3-4]
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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:
Exercise 3-11 Part 1
1.
Exercise 3-11 Part 2
2.
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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:
Explanation / Answer
2.
Computation of total amount of Overead cost
Total Overhead Cost
$30,550
$14,603
$22,010
$26,592
Activity cost Pool Activity Rate Labor-related $9 per DLH Purchase orders $4 per order Product testing $10 per test Template etching $21 per template General factory $7 per MHRelated Questions
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