Answer Happy

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MoverDriver Activity cost pools Activity Customer service 250,000 customers Application design 11,250 programming hours. Regulatory & compliance 7,500 legal hours Service assurance 22,000 service hours. 100 digital interfaces Digital experience Activity cost pools Activity Customer service Application design 250,000 customers 33,750 programming hours Regulatory & compliance 7,500 legal hours Service assurance 66,000 service hours. 700 digital interfaces Digital experience la. What is companywide overhead rate using current system of allocating overhead cost using service hours as the allocation base? Using that rate, show total amount of overhead costs assigned to MoverDriver and total amount of overhead costs assigned to MoverEats. lb. Using ABC costing system, calculate total amount of overhead costs assigned to Move Driver and total amount of overhead costs assigned to MoverEasts. You must have to show all steps of calculation in detail. For each product line, use the activity cost pools of which costs and activities can be specifically traced to the products (you do not need to consider "other" category to allocate since it cannot be traced directly). Ic. Compare the traditional companywide rate based overhead costs versus ABC overhead costs for each product. Do you find any product line of which overhead costs is underestimated by companywide rate based system compared to ABC system? Explain why. MoverEats