The case looks at a situation where a local textile manufacturing company finds its existing costing system inadequate and tries to move towards an activity$-$based costing approach. Even though the newer system is a refinement, it still has its flaws, and the CFO has to decide whether a more accurate system is needed for costing various customer orders.

You will need to calculate the cost of the customer orders given in Exhibit $6$ of the case using the existing costing system and also the proposed costing system in order to formulate an appropriate recommendation for the company.