1. Vex Corporation manufactures a variety of products. In the past, Vex had been using a traditional

overhead allocation system based on machine-hours. For the current year, Vex decided to switch to

an activity-based costing system using machine-hours and the number of inspections as measures of

activity. Information on these measures of activity and related overhead rates for the current year

are as follows:

Estimated Activity Predetermined Overhead Rate

Machine-hours ...............50,000 $8 per machine-hour

Number of inspections ...3,000 $40 per inspection

Job #812 for the current year required 15 machine-hours and 2 inspections. Would th s job

have been overcosted or undercosted under the traditional system and by how much?

2.what is the amount of direct materials cost in the August 31st Work in process inventory account.