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Introduction
Businesses accumulate different costs. An important process is to have a mechanism in place to manage and control the varieties of cost, which are implemented through costing systems. Activity based costing assigns cost to activities and then to goods and services based on how much each good or service uses the activities. Functional based costing, also known as traditional based costing, allows a company to allocate indirect costs to the product using an allocation base such as direct labor hours or machine hours (Hilton, Maher, & Selto, 2006).
Hugh Company Case 4.64-
4.64 (120 min) Choice of cost systems

a. Job costs using current cost system
Current cost system
Budgeted overhead…….. $300,000,000
Budgeted labor hours…..
Employees……………… 1,000
Hours per year………… 2,000
Total labor hours……… 2,000,000
Budgeted overhead rate $ 150 per......

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Approximate Word Count: 1497
Approximate Pages: 6 (250 words per double-spaced page)

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