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Please answer question 8 and 9 (additional ino given to you for reference) 6) (3 points) Because the company has become much more automated in

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6) (3 points) Because the company has become much more automated in recent periods, Superior is considering adopting an Activity Based Costing System to replace its traditional costing system Company would like to compare operating results under the two methods, traditional and ABC. Superior Company has identified the following cost activities: Support, Batch setups, Product sustaining, Inspection and General Factory. Eighteen percent of the overhead costs can be attributable to Support, TO% to Batch Setups, 22 to Product sustaining, 8 for i to General Factory. Superior Company has identified the drivers for each of these costs pools and accumulated statistics for each as they have related to the recent period Use the table below to complete each requirement. a) Use the percentage provided in the description (underlined) to allocate the total applied overhead from JE in ld) to each cost b) Use the driver units to calculate an activity rate for each pool by dividing "Allocated costs by 332 c "units". Show 2 decimals for calculated rates. Allocated costs Calculated Rate Driver units Driver a 760 3,000 Receipts 155 #ofset ups Batch Setups Product Sustaining 70 #of materials 1,200 units 14,.000 machine hours General Factory Total OH (JE 1d) 7) (4 points) In an Activity Based Costing System, overhead is allocated to each job from each cost pool. Complete Driver units' statistics are accumulated for each job and they are listed in the table below. the table below for the following requirements. a) Use the activity units for cach job included in the table and the rates calculated in 6b) above to calculate the overhead allocated for each activity b) For each job, determine the total overhead applied by adding the costs allocated from each pool. (Support, Batch Setups, Product Sustaining and General Factory). BY92 ZF14 units Costs units units 420 200 3a 1,500 40 Support Batch Setups Product Sustaining 23 20 80 60 880 220 4,200 General Factory Total Overhead Applied 69

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