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Question 13 Spencer Inc. is trying to decide whether to use a traditional costing system or an activity-based costing system. Data relevant to both costing

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Question 13 Spencer 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: Direct labour hours: Direct labour rate per hour: $77,200 950 $18 Data relevant to a traditional costing system: The predetermined overhead rate is 200% of direct labour cost. Activity Cost PoolCost Driver Machining Assembly Packaging and shipping Packaging/shipping hours Overhead Rate $24 per hour $9 per sub-assembly $12 per hour Expected Use of Cost Driver Machine hours 700 1,180 200 Number of sub-assemblies Calculate the total cost assigned under a traditional costing system. Total costs assigned cost assigned under an activity-based costing system

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