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Spring, 201s 35 points) Acct 222 Extra Credit (Ch1-8. job Problem 4. E4-35B Compare traditional and ABC allocations as adoptod an ABC costing system. The following manufacturing activities, indirect manufacturing costs and cost drivers have beon idontified: The Job Cost Recond for Job also showed that direct labor for this job totaled 12 hours at a wage rate of $30 per hour 804 revealed that direct materials requisitionad for the job totaled $1,250. The Job Cost Record Total estimated MOH costs related ofallocation base activity to activity Total estimated amount Activity Machine setup Machining Polishing Quality control Facility-level costs Total manufacturing overhead (MOH) $180,000 $ 1,050,000 $100,000 $320,000 $150,000 2,000 setups i 2,000 machine hours 5,000 polishing cloths 4,000 tests run 50,000 DL hours $1,800,000 Other data collected on the resources used by Job #804 included I machine setup required 4 polishing cloths . 6 machine hours 3 quality control tests run Requirements Calculate the activity cost allocation rate for each of the five pools listed in the table. Calculate the total cost of Job #804 (use an ABC costing system). Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? Assume that Comwell Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? 1. 2, 3. 4