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Radley Products has adopted an ABC costing system. The following manufacturing activites, indirect manufacturing costs, and cost drivers have bean denied (Click the icon to view the activity costs and drivers.) The Job Cost Recon for Job #624 revealed that diract materials requisitioned for the job totaled $1,050 The Jo Cost Raced also showed that direct labor for this job totaled 10 hours at a wage rate of $25 per hour. Other collected on the resources used by Job 24 included (Click the icon to view the other d Read the mant Requirement 1. Calculate the activity cost alocation rate for each of the five poois lated in the table. (Round the allocation rate to the newest cent. Abbreviations used DL direct laber: MH machine hour.) Data table Activity con allocation rate Data table Activity Machine setup Machining Total estimated MOH costs related to activity Total estimated amount of allocation base activity 120.000 1,050,000 2.000 supe 6.000 machine hours Polishing 80,000 10,000 pollshing cloths Quality control 200,000 1 machine setup required 5 machine hours 2 polshing cloths 2 quality control tests nin 4,000 test run 120,000 Facility-level costs 50,000 DL hours 1,650,000 Total manufacturing overhead (MOH) Print Done Print Done Clear all Check an th Requirements - X direct 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. 2. Calculate the total cost of Job # 624 (use an ABC costing system). 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? 4. Assume that Radley Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? Print Done

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