| Requirement 3: |
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Prepare a quantitative comparison of the traditional and activity based cost assignments. (Do not round your intermediate calculations. Round your predetermined overhead rate to 2 decimal places. Round your percentage values to 1 decimal places and round all other values to the nearest whole number. Omit the “$” & “%” signs in your response.) |
| Xtreme | Pathfinder | Total | |||
| Traditional Cost System | Amount | % | % | Amount | |
| Direct materials | $ | % | $ | % | $ |
| Direct labor | % | % | |||
| Manufacturing overhead | % | % | |||
| Total cost assigned to products |
$ |
$ |
$ |
||
| Activity Based Costing System | |||||
| Direct costs: | |||||
| Direct materials | $ | % | $ | % | $ |
| Direct labor | % | % | |||
| Indirect costs: | |||||
| Supporting direct labor | % | % | |||
| Batch setups | % | % | |||
| Product sustaining | % | % | |||
| Total cost assigned to products |
$ |
$ |
$ |
||
| Costs not assigned to products: | |||||
| Other | |||||
| Total cost |
$ |
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