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Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity
Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity based costing system. Here are its results. Traditional Costing ABC Sales revenue $6000,000 $600,000 Overhead costs: Product RX3 $34,000 $50,000 Product Y12 36,000 20.000 $70,000 $70,000 Explain how a difference in the overhead costs between the two systems may have occurred.
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