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8. The total cost of the work-in-process on July 31 equals QUESTION 17 30 poir Allexxiss and Associates has been using the traditional product costing

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8. The total cost of the work-in-process on July 31 equals QUESTION 17 30 poir Allexxiss and Associates has been using the traditional product costing approach to assign overhead to all of its packaged food spices. The company MUST follow FDA regulations and is also concerned with providing customers safe, sanitary, and nutritious spices. Consequently, Allessixx engages in high quality control activities. Quality control overhead costs are assigned to products at a rate of 18% of direct labor costs. In October, the company's 'direct labor cost for its spices is 593,000 Management of Allessixx has been requested by its CFO to adopt Activity Based Costing (ABC). Data related to its spices for the month of Aprilr follows below: Activity Cost Pools Cost Drivers Overhead Rate Drivers Used Inspections of materials received Number of pounds $0.92 per pound 6,000 pounds In-process inspections Number of servings $0.33 per serving 10,000 servings FDA Certification Customer orders $13.00 per order 420 orders INSTRUCTIONS: Write a DETAILED memo to the CFO that will indicate whether ABC is a better method of overhead allocation than the traditional for it Spices. You should indicate the overhead cost to be assigned to the Spices product line for the month of October, based on the (1) traditional method and (2) ABC. Include ALL rates under both methods. Next, you should compare and contrast the results of the two methods. Be specific in presenting your comparison Be sure s-amounts are included. Show relevant computations. Proper grammar, punctuation, etc., are expected. E. E T. TTTT Paragraph. Ariel : 3 (121) *DOQOFEJETT, Click Save and submit to see and submit. Click Save All Answers to save all answers Save All Answers

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