Walt Favourites manufactures a wide variety of birthday decorative items. Walt's activity-based costing overhead rates are:

Purchasing$250 per order

Storing$8 per square metre

Machining$60 per machine hour

Supervision$20 per direct labour hour

The Disney's 75th Birthday Project involved five purchase orders, 2,000 square metres, 45 machine hours, and 25 direct labour hours. The cost of direct materials on the job was $35,000 and the direct labour rate is $15 per hour.

a)Calculate the total production costs of the Disney Project using activity-based costing.

b)Calculate the total production costs of the Disney Project using traditional costing, when manufacturing overhead is applied at 125% of direct labour cost.

(12 marks)