As a project manager of a manufacturing firm, you are tasked with determining the total cost for the specific tasks or phases of a larger project. As an example, let's assume you are responsible for Task 100, Task 125, and Task 150. The three tasks involve heavy use of direct labor hour(s) (DLH), machinery usage, and overhead costs.

Based on the given information: What are the underlying reasons for the variance between traditional costing and activity-based costing for Task 100, Task 125, and Task 150? Explain which costing methodology best depicts the true task cost.

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Task 100 Task 125 Task 150 Budget Project (DLH) 100,000 hours Machinery Project Budget 45,000 hours Traditional Costing Driven by DLH 900 DLH @ $15 13000 DLH@ $15 13,500 19,500 900 hours @ $6.75 Machinery Overhead 6,75 1300 hours @ $6.75 Machinery Overhead 8,775 1000 DLH @ $15 15,000 1000 hours@ $6.75 Machinery Overhead 6,750 Total Costing (Traditional Costing) $19,575 $28,275 $21,750 Activity-Based Costing-Machine Hours Driven Direct labor hours 533 machine hours @ $15 466 machine hours@ $15 521 machine hours @ $15 Total Cost (ABC Driven) 13,500 19,500 15,000 7,995 6,995 7,815 $21,495 $26,495 $22,815