Triumph Trophies makes trophies and plaques and operates at capacity. Triumph does large custom orders, such as the participant trophies for the Minnetonka Little League. The controller has asked you to compare Triumph's current costing system that allocates total overhead costs of each department to products and an activity-based costing system.
Triumph Trophies Budgeted Information for the Year Ended November 30, 2013

Other information follows.
Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batches for each product line in each department is as follows.

Supervision costs in each department vary with direct manufacturing labor costs in each department.
1. Calculate the budgeted cost of trophies and plaques based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department, and assembly department overhead costs are allocated based on total direct costs of the assembly department.
2. Calculate the budgeted cost of trophies and plaques if Triumph allocates overhead costs in each department using activity-based costing.
3. Explain how the disaggregation of information could improve or reduce decision quality?

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Forming Department Trophies Plaques Total $48,500 Direct materials $26,000 $22,500 18,000 49,200 Direct manufacturing labor 31,200 Overhead costs 24,000 Setup Supervision 20,772 Total Assembly Department Trophies Plaques $ 5,200 $23,950 Direct materials $18,750 15,600 36,600 Direct manufacturing labor 21,000 Overhead costs Setup 46,000 Supervision 21,920 Trophies 40 Plaques Forming department Assembly department 116 43 103