Acme Enterprises has identified the following overhead costs and cost drivers for the coming year:

Overhead Item                    Cost Driver             Budgeted Cost             Bugeted Activity Level

Quality                                Number of Inspections         $125,000                    2,500

Engineering                         Engineering Hours               100,000                     2,500

Machine Setup                    Setup Hours                           90,000                        400

Material handling                 Num of material moves           85,000                    1,000

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $300,000. The following information was collected on three jobs that were completed during the month:

                                                    Job A                     Job B                       Job C

Direct materials                          $5,000                    $2,800                      $8,000

Direct labor                                 $4,000                    $4,000                      $8,000

Units completed                              200                       100                           300

Number of inspections                      20                        10                             20

Number of material moves                60                        20                             80

Engineering hours                             10                        50                             10

Number of setups                              13                        25                             18

Required

a. If the company uses traditional costing and allocates overhead using direct labor cost, how much overhead cost should be assigned to Job A, B, and C?
b. If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job A, B, and C??
??