Question: which one is correct Docks Inc. has been using a traditional costing system and would like to try the Activity Based Costing system instead. The
which one is correct

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 Predetermined Activity OH rate DL hours 50,000 DL $5 per DL hours Hour Machine 3090.0 $3 per machine . Hours machine hour hours Number of 20,000 Orders orders $4 per order 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 overcosted or undercosted under the traditional system and by how much? 0 $6,800 undercosted 0 $5,400 under-costed 0 $6,800 over-costed 0 None of the answers available is correct 0 $22,200 over-costed
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