Question: Cna you help with the below? Sharp Glass is considering using Activity Based Costing Based on the Given Information: 1. Using the traditional method of

Cna you help with the below?

Sharp Glass is considering using Activity Based Costing
Based on the Given Information:

1. Using the traditional method of costing (using Direct Labour Hours) calculate the total overhead allocated to each of glass and mirror departments (Hint: Calculate total direct labour hours first)

Complete both traditional method and ABC method

2. Using the ABC method of costing calculate the total overhead allocated to each of glass and mirror departments
3. Comment on the difference between traditional and ABC methods
Glass Mirror Overhead Costs
Units produced 750 500
Direct Labour Hours (per unit) 2.50 7.50
Equipment Setups # Setups 30 50 $ 70,000
Scrap Disposal Tons 300 500 $ 160,000
Quality Control # Inspections 200 500 $ 175,000
$ 405,000

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