IN B I V or Av C Saved Open in Desktop App Ev Company A manufactures a line of high-end exercise equipment of commercial quality. Assume that the Controller has proposed changing from a traditional costing system to an activity-based costing system. The Vice-President Finance is not convinced, so she requests that the next large order for equipment be costed under both systems to compare and analyze. The company receives an order from Slim Inc, for 150 low impact treadmills, which the Controller identifies as the order to use for dual costing. The following cost data relate to the Slim Inc order: Data Relevant to Both Costing Systems: Direct materials $55,500 Direct labour hours Direct labour rate per hour Data Relevant to the Traditional Costing System. The predetermined overhead rate is 300% of direct labour cost. Data Relevant to the Activity-Based costing System: Activity. Cost Pools Cost Drivers Activity-Based Expected Use of Overhead Bate Cost Drivers Per Treadmill Engineering design Engineering hours $30 per hour Machine set-up Set-ups $200 per set-up 22 Machining Machine hours $25 per hour 732 Assembly Number of sub $8 per sub- assemblies assembly Packaging & Packaging & $15 per hour Shipping hours Building occupancy Machine hours $6 per hour 732 820 $18 330 1.450 Required: Calculate the total cost of the Slim Inc order under a) The traditional costing system b) The activity-based costing system c) As a result of this comparison which costing System Company A likely to adopt? And 152 w 3 P 9 tv A 80% + Give Feedback to M MacBook Air