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1.5 points Sew Amer S Company produces custom widgets for its customers. The company uses an activity-based costing system for its overhead costs. The
1.5 points Sew Amer S Company produces custom widgets for its customers. The company uses an activity-based costing system for its overhead costs. The company has provided the following data regarding its indirect costs from its activity-based costing system Activity Cost Pool Total Cost Total Activity Assembling. $104906 16370 machine hours Job Support Customer support..... $32376 $5238 1804 jobs 388 clients $102638 Not applicable Other The "Other" activity cost pool consists of costs of idle capacity & organization-sustaining costs. One particular customer, Volley Inc., requested 35 jobs during the year for a total of 144 units, requiring a total of 194 machine hours. Each unit requires $0.00 in direct materials and $1.00 in direct labor The customer was charged $2201 for these jobs Compute the customer margin for Valley Inc. if they used traditional costing instead of ABC on the basis of machine hours. Round ONLY your final answer to 2 decimal places. Do not round intermediate calculations. Enter a positive or negative number based on your results HINT: to compute the total predetermined application rate for traditional costing, divide the total of the indirect costs by the total activity base.
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