otors produces electric motors used by home appliance and other manufacturing compani uested may vary from s many as 2.000. Bender has recently adopted an activity-based costs and drivers. costing (ABC) system with the following overhead Cost Pool Direct labor related Material ordering Material inspection Equipment setup Quality control Machine related Miscellaneous Annual Amount Annual Driver S 350,000 100,000 600,000 450,000 400,000 900,000 650,000 $1,000,000 direct labor cost 4,000 purchase orders 5,000 receiving reports 1,000 setups 2.000 inspection of motors 45,000 machine hours $5.000,000 of product costs other than miscellaneous overhead Total overhead S3,450,000 Recently, the company received an order from Dee's Department Stores for 10 identical motors for use in a y display. Bender estimates the following costs and activities related to the order Material cost Labor cost Purchase orders Receiving reports Setups Inspections Machine hours $477 $240 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