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Question: Question Continued: Additional Data 1: Additional Data 2: Part 1: Part 2: Part 3:

Several years after reengineering its production process, Trudell Corporation hired a new controller, Jane Smith. She developed an ABC system very similar to the one used by Trudell's chief rival, Greengrass. Part of the reason Smith developed the ABO system was because Trudell's profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, Trudell had used a plantwide overhead rate based on direct labor hours that was developed years ago