Calculate the product cost for each of the four tests in accordance with:

a. The existing costing system

b. The costing system proposed by Crest, the accountant

c. The costing system proposed by Posh, the consultant

Costing and Pricing at VMD MIC Prices charged by VMD MIC to its clients are based on the full cost incurred by VMD. In 2015 VMD MIC recorded a small profit of $162,013 (Exhibit 1). The total cost of each procedure, comprises of the cost of Direct Labor (DL), plus an allocation of overhead costs. Overhead costs are allocated as a function of DL S through the calculation of a burden rate per direct labor dollar consumed by a specific test (Exhibit 2). This consumption of DL S by individual tests is indicated in Exhibit 3. Direct Labor includes all activities specifically pertinent to the administration of individual tests, and it includes the wages of employees preparing the patient, calibrating the equipment, administering the test, and performing general upkeep of the equipment. Overhead encompasses all other costs Costing and Pricing at VMD MIC Prices charged by VMD MIC to its clients are based on the full cost incurred by VMD. In 2015 VMD MIC recorded a small profit of $162,013 (Exhibit 1). The total cost of each procedure, comprises of the cost of Direct Labor (DL), plus an allocation of overhead costs. Overhead costs are allocated as a function of DL S through the calculation of a burden rate per direct labor dollar consumed by a specific test (Exhibit 2). This consumption of DL S by individual tests is indicated in Exhibit 3. Direct Labor includes all activities specifically pertinent to the administration of individual tests, and it includes the wages of employees preparing the patient, calibrating the equipment, administering the test, and performing general upkeep of the equipment. Overhead encompasses all other costs