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The following data regarding the activity-based costing system at the Company Co. is available: Base Activity Pool Machine set Budgeted Activity 2997 Budgeted Cost $24444
The following data regarding the activity-based costing system at the Company Co. is available: Base Activity Pool Machine set Budgeted Activity 2997 Budgeted Cost $24444 # of setups up Orders Shipping $96497 # of orders Hours of shipping time 1060 2262 $42650 In addition, prior to adopting an activity based costing system, Company Co. applied overhead based on direct labour hours. The budgeted total labour hours for the year was 46251. If one job required 406 direct labour hours, 39 setups, 50 orders, and 22 hours of shipping time what is the difference between the overhead assigned using the traditional method and ABC? Select one: a. $1436 b. $3849 C. $2937 d. $5285
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