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Question 8 of 41 < > Cullumber Inc. is trying to decide whether to use a traditional costing systern or an activity-based costing system.

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Question 8 of 41 < > Cullumber Inc. is trying to decide whether to use a traditional costing systern or an activity-based costing system. Data relevant to both costing systems: Direct materials: $76,300 Direct labour hours: 990 Direct labour rate per hour: $20 Data relevant to a traditional costing system: The predetermined overhead rate is 220% of direct labour cost. Machine hours Activity Cost Pool Cost Driver Machining Assembly Packaging and shipping Number of sub-assemblies Packaging/shipping hours Overhead Rate Expected Use of Cost Driver $23 per hour 660 1,220 $15 per hour 220 $7 per sub-assembly -/5

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