The following overhead cost information is available:
Activity-------Allocation Base---------overhead cost
Purchasing--#of purchase orders---$400000
Receiving---# of shipments-----------100000
Machine-----# of setups---------------300000
Assembly---direct labor hours-------125000
Quality-------# of inspections---------75000
During the year:
- 1000 purchase orders issued
- 300 shipments
- 600 machine setups
- 750 inspections
- employees worked 10000 direct labor hours
A batch of 200 has the following cost activity
- purchase orders 7
- shipments of material 12
- machine setups 2
- direct labor 50
- inspections 3
A: Determine the overhead allocation for the batch of 200 monitors under the TRADITIONAL overhead allocation base on direct labor hours
B: Determine the overhead allocation for batch under ACTIVITY BASED costing. Round interim calculations and final answer to two decimal points