Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Direct Labour Hours 375 225 Number of Components Product Number of Setups 22 Standard Deluxe 28 12 $40,000 $80,000 Overhead costs Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? i. $49,600 a) $70,400 $75,000 c) $45,000 d) [7.5 marks] ii. Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the deluxe model? $49,600 a) $70,400 b) $75,000 c) $45,000 [7.5 marks] iii. Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model? $49,600 a) $70,400 $75,000 $45,000 d) [7.5 marks] iv. Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model? $49,600 a) $70,400 $75,000 $45,000 [7.5 marks] Traditional cost systems distort product costs because: V. a) They do not know how to identify the appropriate units Competitive pricing is ignored b) They emphasize financial accounting requirements c) They apply average support costs to each unit of product [10 marks]