Assigning Costs Using Traditional System, ABC System
Refer to E4-12.
Required:
1.Calculate the overhead assigned to the Super Doghouse line using the traditional costing system based on direct labor hours.
2. Calculate the overhead assigned to the Super Doghouse line using an activity based costing system. (Round activity rates or activity proportions to four decimal places if necessary.)
3. Was the Super Doghouse over or undercosted by the traditional cost system compared to ABC?
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