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Question 19 Spencer Inc. is trying to decide whether to use a traditional costing system or an activity-based costing system. Data relevant to both costing
Question 19 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: $77,200 Direct labour hours: 950 Direct labour rate per hour $18 Data relevant to a traditional costing system: The predetermined overhead rate is 200% of direct labour cost Activity Cost Pool Machining Assembly Packaging and shipping Cost Driver Machine hours Number of sub-assemblies Padang/shipping hours Overhead Rate $24 per hour $9 per sub-assembly $12 per hour Expected Use of Cost Driver 700 1,180 200 Calculate the total cost assigned under a traditional costing system, Total costs assigned LINE TO TEXT Calculate the total cost assigned under an activity-based costing system Total costs assigned LINE TO TEXT Question Attempts of 1 used SAVE FOR LATER MacBook Air
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