Rraditional cost accounting system

Reference no: EM13150718

Weber Corporation has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 15% of direct labor cost. Monthly direct labor costs for its main product is $30,000. In an attempt to distribute quality control costs more equitably, Weber is considering activity-based costing (ABC). The monthly data shown below have been gathered for the main product. The three activities are (1) incoming materials inspection, (2) in-process inspection, and (3) product certification. Costs are to be allocated to each activity on the basis of cost drivers.

Reference no: EM13150718

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