Determine the amount of overheads that would be allocated to the proposed job if direct labour hours are used as the volume-based cost driver.
Determine the total cost of the proposed job.
Determine the company's bid if the bid is based upon full manufacturing cost plus 40%.
Determine the amount of overheads that would be applied to the proposed job if activity-based costing is used.
Determine the total cost of the proposed job if activity-based costing is used.
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30%.
Which product costing method produces the more accurate costing? Briefly explain.