Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results. Traditional Costing ABC Sales revenue $600,000 $600,000 Overhead Costs: Product RX3 $34,000 $50,000 ProductY12 36,000 20,000 $70,000 $70,000 Explain how a difference in the overhead costs between the two systems may have occurred.
Finney Inc. has conducted an analysis of
Traditional Costing ABC
Sales revenue $600,000 $600,000
Overhead Costs:
Product RX3 $34,000 $50,000
ProductY12 36,000 20,000
$70,000 $70,000
Explain how a difference in the overhead costs between the two systems may have occurred.
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