Q2.20 mark) Company A manufactures a line of high end merche equipment of commerciality. Assume that the Controller has proposed changing from a traditional casting system to an activity based costing system. The Vice President Finance is not convinced, so she requests that the next large order for equipment be costed under both systems to compare and analyze. The company receives an order from Slim Inc, for 150 low impact treadmills, which the Controller identifies as the order to use for dual costing. The following cost data relate to the Slim Inc order Data Relevant to Both Costing Systems: Direct materials $55,500 Direct labour hours 820 Direct labourate per hour $18 Data Relevant to the Traditional Costing System. The predetermined overhead rate is 300% of direct labour cost. Data Relevant to the Activity-Based costing System: Activity Cost Pools Cost Drivers Activity-Based Overhead Rate Expected Use of Cost Drivers 100 Q2.20 mark) Company A manufactures a line of high end merche equipment of commerciality. Assume that the Controller has proposed changing from a traditional casting system to an activity based costing system. The Vice President Finance is not convinced, so she requests that the next large order for equipment be costed under both systems to compare and analyze. The company receives an order from Slim Inc, for 150 low impact treadmills, which the Controller identifies as the order to use for dual costing. The following cost data relate to the Slim Inc order Data Relevant to Both Costing Systems: Direct materials $55,500 Direct labour hours 820 Direct labourate per hour $18 Data Relevant to the Traditional Costing System. The predetermined overhead rate is 300% of direct labour cost. Data Relevant to the Activity-Based costing System: Activity Cost Pools Cost Drivers Activity-Based Overhead Rate Expected Use of Cost Drivers 100