Docks Inc. has been using a traditional costing system and would like to try the Activity Based Costing system instead. The total overhead of the company is $420,000 and the labour rate is $20 per hour. Under the traditional costing system, the overhead was allocated based on DL Hours and under the Activity Based Costing System, the following activities and cost pools were identified: Estimated Activity Predetermined OH rate 50,000 DL $5 per DL DL hours hours Hour 30,000 Machine $3 per machine Hours machine hour hours Number of Orders 20,000 $4 per order orders One of the clients of Docks Inc. required usage of 2,000DL hours; 3,000 machine hours, and placed 800 orders. Would this job have been over-costed or under-costed under the traditional system and by how much? $6,800 under-costed None of the answers available is correct $6,800 over-costed $5,400 under-costed $22,200 over-costed