Superior Company currently uses a traditional costing system to assign overhead costs uniformly to all jobs at a rate of 20% of direct labor costs. The President has suggested adopting activity-based costing. Total estimated overhead allocated to the assembling cost pool is $7,500, estimated overhead allocated to the machining pool is $5,250, and estimated overhead allocated to the inspecting cost pool is $1,000. Data related to the production of picnic tables is below.

Activity Cost PoolsCost DriversExpected Use of Cost Drivers per ActivityABC Overhead

RateAssemblingNumber of boards?$1.50MachiningNumber of machine hours?$15.00InspectingNumber of inspections?$5.001) Compute the expected use of each cost driver for each activity (3 pts).

2) Job A492 has $300 of direct materials cost, $260 of direct labor cost; uses 50 boards, 10 machine hours, and 1 inspection.Using activity-based costing, what amount of manufacturing overhead would be assigned to Job A492? (2 pts)

3) Using the information from question 2, compute the total cost of Job A492 using (a) the activity-based costing system AND (b) the traditional costing system (4 pts).

4) Classify each of the activities as value-added or non-value-added (1 pt).