Remaining Time: 1 hour, 28 minutes, 47 seconds. Question Completion Status: QUESTION 21 Jerome and Sons has been using the traditional product conting approach to assign overhead to all of its essential oils. The company MUST follow FDA regulations and is also concerned with providing customers safety, sanitary, and allergies free oils. Recently, Jerome increased its quality control activities. Quality control overhead costs are assigned to produ rate of 19.5% of direct labor costs. In September, the company's direct labor cost for its oils is $100,000 Management of Jerome has been requested by its CFO to adopt Activity Based Coating (ABC). Data related to its spices for the month of September follows below: Activity Cost Pools Cost Drivers Overhead Rate Drivers Used Inspections of materials received Number of pounds $0.92 per pound 6,500 pounds In-process inspections Number of servings $0.33 per serving 10,000 servings FDA Certification Customer orders $13.00 per order 500 orders INSTRUCTIONS: Write a memo to the CFO that will indicate whether ABC is a better method of overhead allocation than the traditional for it onsential oils. You should indicate the overhead cost to be assigned to the Spices 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 $-amounts are included. Show relevant computations. 13 TTTT Paragraph Arial XOQ Si Mushups - 1 # 3 (120) TT