Ch17 Case Study Assignment - Part 3 Activity Based Costing versus Traditional Costing Problem. Currently Kingdom Industries is considering Changing to an Activity Based Costing System due to increased sales, increased number of products,and a more complex manufacturing process with many activities. Kingdom Industries has the tallowing overhead costs and cost drivers. Activitv Cost Pools Machine Setup Machining Inspection Traditional Cost Pool cost Driver Machine hours Inspections Direct Labor Hours Estimated Overhead $56,250 $50,000 $600,000 $450,000 Cost Activitv 9,250 10,000 setups 50,000 MH 600,000 puts 40,000 inspections 1,000 DL Hours I: Compute the total overhead costs assigned to Product C using activity based costing: ABC Overhead Rate (Please Product C Overhead Pl Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Product C Activity See Tip I below) 250 Orders 500 setups 6,000 Machine SO,OOO Parts S,OOO Inspect'o using ABC costing, Summarize Total Overhead Costs assigned to Product C fip I: ABC Overhead Rate = Estimated Overhead / Cost Driver Activity proggct PreducVC ABC Rate 2: Compute the total overhead costs assigned to Product C using traditional costing: See Tip 2 below) T below Product C Activitv Iso Ilours Please See Ti 3 be ow Traditional cost Pool 3: Compute and compare ABC Overhead Costs to Traditional Overhead Costs for Product C: proposed ABC Increase/ (Decrease) Product C OH Costs Ch17 Case Study Assignment - Part 3 (Total IOpts) How Do I Write my Posting? (150 words - 5pt5; Completed Problem - 2pts; Total 7ptsJ; Students will be graded on their effortto fully complete their posting, reply, and problem. a. Based on your results for Product A Overhead for Traditional Costing and the proposed ABC Costing: I-Would you recommend Traditional Costing or ABC Costing for computing overhead? (35 words - 1.25pts) 2-Explain two reasons (benefits or drawbacks) for your decision. (40 words - 1.25pts) b. xplain and compare unit Level Activities to product Level ActlVlties. Provide and explain two examples for unit Ledel Activities. (35 words 1.25pts) 2-Provide and explain two examples for Product Level Activities. (40 words - 1.25pts) 3- Upload and attach your completed spreadsheet file to your posting. (Total 2ptsJ