Setup costs for Weird Al’s two different accordion products: The Polka, and The Super amounted to $9,000. Each product has the same number of set-ups. Weird Al used 6,000 labor hours to product The Polka, and 12,000 labor hours to produce The Super. Weird Al currently applies all overhead based on direct labors hours. However, after taking BUADA 2050 Weird Al is considering switching to activity based costing. What is the impact?     The Polka is             (indicate under or over-costed) by $__________ under traditional costing.    The Super is _____________(indicate under or over-costed) by $__________ under traditional costing.

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.