E25-11 Baxter Fabricators, Inc.. completed two jobs in June 20X4. Baxter recorded the fol- lowing costs assigned to the jobs by the company's activity-based costing system: Allocated Cost Activity Allocation Base Job 204 Job 609 Materials handling Number of parts Lathe work Number of turns $ 400 4,000 $ 1,200 12,000 Milling Number of machine hours 3,000 21.000 Grinding Number of parts 300 1.200. Testing Number of output units 150 3.000 Job 609 required 3,000 parts: 60.000 lathe turns: and 1,050 machine hours. All 300 of the job's output units were tested, and all units of the Job 204 were tested. Required 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? 2. Disregard materials-handling costs. How many parts were used for Job 204? How many lathe turns did Job 204 require? How many machine hours? How many units were pro- duced in Job 204? 3. A nearby company has offered to test all product units for $13 each. On the basis of ABC data, should Baxter accept or reject the offer? Give your reason.