TRADITIONAL VERSUS ACTIVITY BASED COSTING Holiday Favorites manufactures a wide variety of holliday and seasonal decorative items. Its budgeted manufacturing overhead costs for the year 2018 are as follows: Purchasing Storing Machining Supervision Total budgeted overhead costs $700,000 $800,000 $100,000 $400,000 $2,000,000 For the last two years, the company has been charging overhead to products on the basis of direct labor dollars. For the year 2018, $800,000 direct labor dollars are budgeted. Kevin Spooky, owner of Holiday Favorites has directed the company accountant to implement activity based costing. Kevin and the accountant identify the following cost drivers and their usage for the previously budgeted overhead cost pools Overhead Cost Pools Purchasing Storing Machining Number of Orders Square Feet Machine Hours Direct Labor Hours Total Drivers 10,000 200,000 500 40,000 Supervision The Haunted House project involved the following actual information Direct Materials $38,000 Direct Labor $20,000 Purchase Orders Square Feet Machine Hours Direct Labor Hours 6,000 80 60 Determine the total cost of the Haunted House Project using traditional and activity based costing