[tony16]

Swagg Jewelry Corporation manufactures custom jewelry. In the past, Swagg has been using a traditional overhead allocation system based solely on direct labor-hours. Sensing that this system was distorting costs and selling prices, Swagg has decided to switch to an activity-based costing system using three activity cost pools. Information on these activity cost pools are as follows:

(Info will be on different question, size was too big)

Job #309 incurred $900 of direct material, 30 hours of direct labor at $40 per hour, 80 machine hours, and 5 inspections.

Required:
a. What is the cost of the job under the activity-based costing system?
b. Relative to the activity-based costing system, would Job#309 have been overcosted or undercosted under the traditional system and by how much?

This is a tough one, any type of help would be appreciated. Thanks!