Spencer Inc., is trying to decide whether to use a traditional costing system or an activity based
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Spencer Inc., is trying to decide whether to use a traditional costing system or an activity based costing system.
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Data relevant to both costing systems: Direct materials: $77,200 950 Direct labour hours: Direct labour rate per hour: $18 Data relevant to a traditional costing system: The predetermined overhead rate is 200% of direct labour cost. Overhead Rate Expected Use of Cost Driver Activity Cost Pool Cost Driver 700 Machine hours $24 per hour Machining 1,180 Assembly Number of sub-assemblies $9 per sub-assembly 200 $12 per hour Packaging and shipping Packaging/shipping hours Calculate the total cost assigned under a traditional costing system. Total costs assigned LINK TO TEXT Calculate the total cost assigned under an activity-based costing system. Total costs assigned LINK TO TEXT Data relevant to both costing systems: Direct materials: $77,200 950 Direct labour hours: Direct labour rate per hour: $18 Data relevant to a traditional costing system: The predetermined overhead rate is 200% of direct labour cost. Overhead Rate Expected Use of Cost Driver Activity Cost Pool Cost Driver 700 Machine hours $24 per hour Machining 1,180 Assembly Number of sub-assemblies $9 per sub-assembly 200 $12 per hour Packaging and shipping Packaging/shipping hours Calculate the total cost assigned under a traditional costing system. Total costs assigned LINK TO TEXT Calculate the total cost assigned under an activity-based costing system. Total costs assigned LINK TO TEXT
Expert Answer:
Answer rating: 100% (QA)
Ans 1 Total Cot under Tradi fional Costing syeten Dive ct matevial 7720... View the full answer
Related Book For
Personal Financial Planning
ISBN: 978-1111971632
13th edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
Posted Date:
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