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ABC SYSTEM Ahlia provides the following data for 2011 for each product: Ins 1. Cost of each activity 2. Overhead applied for each activity 3.

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ABC SYSTEM Ahlia provides the following data for 2011 for each product: Ins 1. Cost of each activity 2. Overhead applied for each activity 3. Indirect cost for each product 4. Total cost for each product Example 4: Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: 1. What is the overhead applied to Regular using traditional costing using direct labor hours? 2. What is the overhead applied to Supreme using traditional costing using direct labor hours? 3. What is the overhead applied to Regular using activity-based costing? 4. What is the overhead applied to Supreme using activity-based costing? ABC SYSTEM Ahlia provides the following data for 2011 for each product: Ins 1. Cost of each activity 2. Overhead applied for each activity 3. Indirect cost for each product 4. Total cost for each product Example 4: Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: 1. What is the overhead applied to Regular using traditional costing using direct labor hours? 2. What is the overhead applied to Supreme using traditional costing using direct labor hours? 3. What is the overhead applied to Regular using activity-based costing? 4. What is the overhead applied to Supreme using activity-based costing

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