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Layla has been allocating MOH costs to their three different products using a single plant - wide rate of $ 1 9 per DL hour.

Layla has been allocating MOH costs to their three different products using a single plant-wide rate of $19 per DL hour. Their controller has suggested a switch to the following activity-based rates: $10 per production run, $15 per direct labor hour and $12 per inspection hour. If the most recent job required 5 production runs, 150 DL hours and 5 inspection hours, what is the difference in MOH allocation between the traditional and ABC methods of costing?
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$490 less using the traditional method
$490 more using the traditional method
$1,700 more using the traditional method
$490 more using the ABC method

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