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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
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.
What difference in the overhead costs between the two systems may have occurred?
TRADITIONAL COSTINGABC
Sales Revenue $600,000$600,000
Overhead Costs:
Product RX3 $34,000$50,000
Product Y12 $36,000$20,000
TOTAL $70,000 $70,000
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