Radley Products has adopted an ACB costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified

Machine setup 120,000 2,000 setups

Machining 1,050,000 6,000 machine hrs

Polishing 80,000 10,000 polishing cloths

Quality control 280,000 4,000 test runs

Facility-level costs 120,000 50,000 DL hrs

MOH 1,650,000

The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,050. the Job Cost Record also showed that direct labor for this job totaled 10 hrs at a wage rate of $25 per hour. Other data collected on the resources used by Job #624 included:

1 machine setup required

5 machine hrs

2 polishing cloths

2 quality control tests run

Requirements

1.Calculate the activity cost allocation rate for each of the five pools listed in the table

2. Calculate the total cost of Job #624 (ABC costing system)

3. Why would ABC provide a more accurate allocation of manufacturing overhead than a plantwide rate?

4. Assume that Radley Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor hrs as the allocation base. How much cost distortion would have occurred on this job?