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Question 6 0.85 pts Bames Boards manufactures two types of skateboards. A standard board and a long board. Currently, Barnes Boards uses a traditional
Question 6 0.85 pts Bames Boards manufactures two types of skateboards. A standard board and a long board. Currently, Barnes Boards uses a traditional cost accounting system where direct labor hours are used to assign overhead. However, Barnes Boards is considering an activity based costing system that breaks overhead into 3 indirect cost pools: (1) setup cost, (2) machining cost, and (3) other overhead. Costs from these three pools will be assigned to products on the basis of setup hours, machine hours, and direct labor hours, respectively. Activity levels for Barnes Boards is as follows: Standard boards Long boards Setup hours 1.500 2.250 Machine hours 12.000 18,000 Direct labor hours 4,000 6,000 Compared to the traditional system, an activity based costing system would assign O more cost to both types of skateboards O less cost to both types of skateboards O more cost to the standard skateboard and less cost to the long board O more cost to the long board and less cost to the standard board O the same amount of cost to both types of skateboards
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