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Romblon Company is choosing between traditional costing and activity-based costing. The following data are provided: Activity-Based Costing Activity center Material handling Painting Assembly Traditional
Romblon Company is choosing between traditional costing and activity-based costing. The following data are provided: Activity-Based Costing Activity center Material handling Painting Assembly Traditional Costing Traditional Cost driver Kilos handled Units painted Machine hours Labor hours Amount of activity 100,000 kg. 50,000 units 10,000 hours 100,000 hours Job 1 contains 3,000 units. It weighs 10,000 kilos and uses 300 machine hours. The direct labor hours on the job total 7,000 hours. This Problem is associated with two questions: 1. What is the applied overhead under traditional costing? 2. What is the applied overhead under Activity Based Costing? Question asked specifically for this item: What is the applied overhead under traditional costing? O a. 80,000 O b. 50,000 O c. 60,000 O d. 70,000 Center cost 200,000 300,000 500,000 1,000,000
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