London Corporation manufactures custom jewelry. In the past, London has been using a traditional overhead allocation system based solely on direct labor hours. Sensing that this system was distorting costs and selling prices, London has decided to switch to an activity-based costing system using three activity cost pools. Information on these activity cost pools are as follows:

Activity Cost Pool	Total Cost	Total Activity
Labor Related	$40,000	8,000 Direct labor hours
Machine Related	$50,000	12,500 Machine Hours
Quality Control	$12,000	800 Inspections

London has received an order and will complete as Job #309 and expect to incur $900 of direct material, 30 hours of direct labor at $40 per hour, 80 machine hours, and 5 inspections. London needs a markup of 40% on the job. Required: A). Calculate the activity rate and compute is the expected cost of job#309 under the activity-based costing system? What should be the quote on this job? B). Relative to the activity-based costing system, would Job #309 have been overcoated or undercoated under the traditional system, and by how much?