=+Demand for administrative resources increases with direct labour cost Cause-and-effect relationship between allocation base and activity cost Indirect costs of operating printing machines increase with printing machine-hours Indirect set-up costs increase with set-up hours Indirect purchase order costs increase with number of purchase orders 500 400 200 10 10 400 5% 5%

Required 1 Calculate the cost of a standard job and a special job under the simple costing system.