Remaining Time: 1 hour, 08 minutes, 54 1800+97000)/ 15200-6 QUESTION 22 tarex NRG has been using the traditional product costing approach to assign overhead to all of its packaged vitamins. The company MUST follow FDA regulations and is also concerned with providing customers safe, sanitary, and beneficial vitamins. Consequently Vitarex NRG engages in high quality control activities. Quality control overhead costs are assigned to products at a rate of i 8% of direct labor costs. In October, the company's direct labor cost for its Daily Vitamins is $83,000. for the month of October follows below: Inspections of Management of Vitarex NRG has been requested by it CFO to adopt Activity Based Costing (ABC). Data related to its Daily Vitamins Number of pounds Number of servings Customer orders S0.90 per pound $0.33 per serving S12.00 per order Drivers Used 6,000 pounds 420 orders 10,000 servings In-process inspections FDA Certification INSTRUCTIONS: Write a memo to the CFO that will indicate whether ABC is a better method of overhcad allocation than the traditional for it Daily Vitamins. You should indicate the overhead cost to be assigned to the Daily Vitamins product line for the month of October based on the (1) traditional method and (2) ABC. Next, you should compare and contract the results of the two methods. Be very specific in presenting your comparison. Be sure S-amounts are included. Show ALL relevant computations. TTT Paragraph: Anal : 3(12pt) : :-.-. T.2.e to save all Click Save and Submit to save and submit. Click Save All ook Pro