3. The controller for Mitchell Supply Company has established the following overhead cost pools and cost...

control S450 5 Other overhead 6 Total overhead $3,600 S22,050 8 B 9 Rate per hour 10 Total overhead assigned to Order no. 610 S22 per machine hour $13,200 12 C 13 Merits of ABC costing 14 It helps in allocating overhead cost more accurately than traditional costing 15 It provides the information about cost behavior 16 It helps in tracing the overhead costs with respect to cost objects accurately 17 Better decision making is done using ABC costing instead of traditional costing Calculations are shown below 4 5 Other overhead 6 Total overhead 37500/1000) 12 90000/15000) 600 control SUMB2 B5 8 B Rate per hour 10 Total overhead assigned to Order no. 610 330000/15000 B9 600 machine hour 12 C 13 Merits of ABC costiin 14 It helps in allocating overhead cost more accurately than traditional cos 15 It provides the information about cost behavior 16 It helps in tracing the overhead costs with re 17 Better decision to cost ob ABC costing instead of traditional cos is done u