What is the cost of the job under the activity-based costing system?

Swagg Jewelry Corporation manufactures custom jewelry. In the past, Swagg has been using a traditional overhead allocation system based solely on direct labor hours. Sensing that this system was distorting costs and selling prices, Swagg has decided to switch to an activity-based costing system using three activity cost pools. Information on these activity cost pools are as follows:

Activity Cost Pool

Estimated Activity

Estimated Overhead Cost

Labor related

8,000 direct labor hours

$40,000

Machine related

12,500 machine hours

$50,000

Quality control

800 number of inspections

$12,000

Job #309 incurred $900 of direct material, 30 hours of direct labor at $40 per hour, 80 machine hours, and 5 inspections.

Required:

a. What is the cost of the job under the activity-based costing system?

b. Relative to the activity-based costing system, would Job #309 have been overcosted or undercosted under the traditional system and by how much?