Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with part b of the question. Cullumber Inc. is trying to decide whether to use a traditional costing system or an activity-based costing
please help with part b of the question.
Cullumber Inc. is trying to decide whether to use a traditional costing system or an activity-based costing system. Data relevant to both costing systems: Direct materials: $76,300 Direct labour hours: 990 Direct labour rate per hour: $20 Data relevant to a traditional costing system: The predetermined overhead rate is 220% of direct labour cost. Activity Cost Pool Cost Driver Overhead Rate Expected Use of Cost Driver Machining Machine hours $23 per hour 660 Assembly Number of sub-assemblies $7 per sub-assembly 1,220 Packaging and shipping Packaging/shipping hours $15 per hour arch 220 Activity Cost Pool Cost Driver Overhead Rate Expected Use of Cost Driver Machining Machine hours $23 per hour 660 Assembly Number of sub-assemblies $7 per sub-assembly 1,220 Packaging and shipping Packaging/shipping hours $15 per hour 220 (a) Your answer has been saved. See score details after the due date. Calculate the total cost assigned under a traditional costing system. Total costs assigned $ 139,660 Question 8 of 41 Calculate the total cost assigned under a traditional costing system. Total costs assigned $ 189660 (b) Calculate the total cost assigned under an activity-based costing system. Total costs assigned $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started