finney inc has conducted an analysis of overhead costs related to one of its product 492606
Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results.
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finney inc has conducted an analysis of overhead costs related to one of its product 492606
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|
Traditional Costing |
ABC |
|
|
Sales revenue |
600,000 |
600,000 |
|
Overhead costs: |
||
|
Product Rx3 |
34,000 |
50,000 |
|
Product Y12 |
36,000 |
20,000 |
|
$70,000 |
$70,000 |
Explain how a difference in the overhead costs between the two systems may have occurred.
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