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Spencer Inc. is trying to decide whether to use a traditional costing system or an activity-based costing system. Data relevant to both costing systems: Direct
Spencer Inc. is trying to decide whether to use a traditional costing system or an activity-based costing system. Data relevant to both costing systems: Direct materials: Direct labour hours: Direct labour rate per hour: $77,200 980 $20 Data relevant to a traditional costing system: The predetermined overhead rate is 220% of direct labour cost. Activity Cost Pool Machining Assembly Packaging and shipping Cost Driver Machine hours Number of sub-assemblies Packaging/shipping hours Overhead Rate $24 per hour $8 per sub-assembly $14 per hour Expected Use of Cost Driver 670 1,200 220 Calculate the total cost assigned under a traditional costing system. Total costs assigned LINK TO TEXT Calculate the total cost assigned under an activity-based costing system. Total costs assigned
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