I solved the problem, but I have a question.Where Professors take questions from for Cost Accounting? Is it from CPA? I have test bank but questions so easy comparing to this one.

Thank you!

Hawthorn Inc. is considering the adoption of an activity-based costing (ABC) system because the company suspects that their traditional costing system distorts product costs Hawthom produces and sells two products Their traditional costing system uses direct labor hours (DLHs) as the sl and Premium. ocation base for manufacturing overhead cost. Hawthorn's decided that major activities are Machine setups, Special processing. General factory, and Relations. The Marketing Department in the Headquarter i responsible for Customer Relations Assume there is no diffierence between the actual and the estimated usage of the activities and their corresponding costs. The information for the two product is given below Sunit Hourly Wage Shipping cost 150 S20 1.00 z S20 Price DM/unit DLHs Product Units per unit S1.00 $3.00 Value 6,000$170 5,000 S210 $82 The company collected the data for ABC as follows: Activity measures used Activity Measure t of setups DLHs #ofcustormers Activity Cost Pool Machine setup Value Premium Toal cial General factory Customer Relation 182,000 1 220,000 4,000 7 What is the difference in the allocated Ol cost between the traditional costing system A. The traditional costing system overcosts Premium by and ABC for Premium B. The traditional costing system undercosts Premium by: C. The traditional costing system overcosts Premium by: D. The traditional costing system undercosts Premium by $36.50 per unin 536.50 per unit S43.80 per unit $43.80 per unit E. None of the above Hawthorn has two major customers who buy their products in the amounts shown in the table below: Custorner Value 2,000 units o 1,000 units 2 1,000 8 According to ABC, how much is the customer margin of customer B? S (3,600) s 36,200 C. 41,200 D. S 80,200 E. None of the above