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Help with each problem if can be detailed I'm confused ACC3300 -Fall 2017-Chapter 5 Exciting In-Class Exercise Bender Electric Motors produces electric motors used by

image text in transcribed Help with each problem if can be detailed I'm confused
ACC3300 -Fall 2017-Chapter 5 Exciting In-Class Exercise Bender Electric Motors produces electric motors used by home appliance and other manufacturing companies many as 2,000. costs and drivers. Each motor is built to customer specifications although the number of units requested may vary from 1 to as Bender has recently adopted an activity-based costing (ABC) system with the following overhead Cost Pool Direct labor related Material ordering Material inspection Equipment setup Quality control Machine related Miscellaneous StCPl $1,000,000 direct labor cost 35 Annual Driver S 350,000 100,000 600,000 450,000 400,000 900,000 4,000 purchase orders 25 peR Quron 5,000 receiving reports 1,000 setups 12 0 2,000 inspection of motors 20% PenSpatio 45,000 machine hours 20 Pee m 650,000$5,000,000 of product costs other.13 than miscellaneous overhead Total overhead $3.450,000 Recently, the company received an order from Dee's Department Stores for 10 identical motors for use in a holiday display. Bender estimates the following costs and activities related to the order Material cost Labor cost Purchase orders Receiving reports 3 x 120 460 Machine hours 11 x20 Note that all costs indicated are for all 10 motors - they are not per motor Required 1) Calculate the cost of the Dee's Department Store job using the new ABC system. 2) Calculate the cost of the Dee's Department Store job assuming the company used a traditional costing system with receiving reports as the only allocation base. 3) Is the job under-costed or over-costed using the traditional costing system and by how much? 3.45m 0 OH 2010 (10k5) Costeal

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