0 Data Table $, Artprint collects the Artprint Corporation ow Artprint classifies its va (Click the icon to vi TD E Total Cause-and-Effect Relationship Between Allocation Base and Activity Cost Requirement 1. Calcul hearest cent, X.XX.) A 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job || 5 Direct labor costs per job | 6 Printing machine-hours per job Simple Costing Syste Cost of supplies per jo Direct manufacturing la Indirect cost allocated Standard Job Special Job 1,200 600 1,000 $ 1,200 210 $ 240 $ 220 $ 230 I 10 1 0 A L Total costs $ Indirect costs of operating printing machines increase with printing machine-hours 360,000 Requirement 2. Calcul 3 6 7 Cost of printing machine operations | 8 Setup-hours per job Setup costs 10 Total number of purchase orders $ 165,600] Indirect setup costs increase with setup-hours | activities except Begin by calculating the Administration; round Al 310 410 Purchase order costs $ Machine operations Indirect purchase order costs increase with number 20,160 of purchase orders Design costs are allocated to standard and special jobs based on a special study of the design 45,000/ department Setups 2 Design costs 11,000$ 34,000 $ Purchase orders Artprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Artprint classifies its various printing jobs as standard jobs or special jobs. (Click the icon to view additional information.) To see how activity-based costing would affect the costs of standard and special jobs, Artprint collects the following information for the fiscal year 2017 that just ended. (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system. (Round Requirements Standard Special Simple Costing System Job Job Cost of supplies per job 1. Calculate the cost of a standard job and a special job under the simple costing system. Direct manufacturing labor cost per job 2. Calculate the cost of a standard job and a special job under the activity-based costing system. 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the Indirect cost allocated to each job simple and activity-based costing systems differ in the cost of a standard job and a special job? Total costs 4. How might Artprint use the new cost information from its activity-based costing system to better manage its business? Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct Administration; round Administration to five decimal places, X.XXXXX.) Print Print Done Done ABC Allocation rate Machine operations + Setups Purchase orders + Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities except Administration; round Administration to five decimal places, X.XXXXX.) ABC Allocation rate . . Machine operations Setups + Purchase orders + Administration + Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities except Administration; round Administration to five decimal places, X.XXXXX.) ABC Allocation rate . . Machine operations Setups + Purchase orders + Administration + Now, completing the table for total costs of standard jobs, special jobs and then cost per job for each type of job. (Round your answers to the nearest whole dollar except cost per job. Round cost per job to the nearest cent.) Standard Special Job Job ABC Costing System Cost of supplies Direct manufacturing labor costs Indirect costs allocated: Machine operations Setups Purchase orders Design Marketing Administration Total costs Cost of each job Requirement 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of a standard job and a special job? v under the simple costing sytem than under the activity-based costing system. Standard jobs cost v under the simple costing system than under the activity-based costing system. Special jobs cost Relative to the ABC system, the simple costing system v standard jobs and V special jobs. Requirement 4. How might Artprint use the new cost information from its activity-based costing system to better manage its business? O A. Under the simple system, Artprint was making a gross margin of 21% on each standard job and 9% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 13% on each standard job and about 14% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market special jobs more aggressively than before. OB. Under the simple system, Artprint was making a gross margin of 9% on each standard job and 21% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 14% on each standard job and about 13% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market special jobs more aggressively than before. O C. Under the simple system, Artprint was making a gross margin of 9% on each standard job and 21% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 14% on each standard job and about 13% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market standard jobs more aggressively than before. OD. None of the above. The new cost information would have no impact on how the company manages its business. 0 Data Table $, Artprint collects the Artprint Corporation ow Artprint classifies its va (Click the icon to vi TD E Total Cause-and-Effect Relationship Between Allocation Base and Activity Cost Requirement 1. Calcul hearest cent, X.XX.) A 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job || 5 Direct labor costs per job | 6 Printing machine-hours per job Simple Costing Syste Cost of supplies per jo Direct manufacturing la Indirect cost allocated Standard Job Special Job 1,200 600 1,000 $ 1,200 210 $ 240 $ 220 $ 230 I 10 1 0 A L Total costs $ Indirect costs of operating printing machines increase with printing machine-hours 360,000 Requirement 2. Calcul 3 6 7 Cost of printing machine operations | 8 Setup-hours per job Setup costs 10 Total number of purchase orders $ 165,600] Indirect setup costs increase with setup-hours | activities except Begin by calculating the Administration; round Al 310 410 Purchase order costs $ Machine operations Indirect purchase order costs increase with number 20,160 of purchase orders Design costs are allocated to standard and special jobs based on a special study of the design 45,000/ department Setups 2 Design costs 11,000$ 34,000 $ Purchase orders Artprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Artprint classifies its various printing jobs as standard jobs or special jobs. (Click the icon to view additional information.) To see how activity-based costing would affect the costs of standard and special jobs, Artprint collects the following information for the fiscal year 2017 that just ended. (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system. (Round Requirements Standard Special Simple Costing System Job Job Cost of supplies per job 1. Calculate the cost of a standard job and a special job under the simple costing system. Direct manufacturing labor cost per job 2. Calculate the cost of a standard job and a special job under the activity-based costing system. 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the Indirect cost allocated to each job simple and activity-based costing systems differ in the cost of a standard job and a special job? Total costs 4. How might Artprint use the new cost information from its activity-based costing system to better manage its business? Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct Administration; round Administration to five decimal places, X.XXXXX.) Print Print Done Done ABC Allocation rate Machine operations + Setups Purchase orders + Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities except Administration; round Administration to five decimal places, X.XXXXX.) ABC Allocation rate . . Machine operations Setups + Purchase orders + Administration + Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system. Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities except Administration; round Administration to five decimal places, X.XXXXX.) ABC Allocation rate . . Machine operations Setups + Purchase orders + Administration + Now, completing the table for total costs of standard jobs, special jobs and then cost per job for each type of job. (Round your answers to the nearest whole dollar except cost per job. Round cost per job to the nearest cent.) Standard Special Job Job ABC Costing System Cost of supplies Direct manufacturing labor costs Indirect costs allocated: Machine operations Setups Purchase orders Design Marketing Administration Total costs Cost of each job Requirement 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of a standard job and a special job? v under the simple costing sytem than under the activity-based costing system. Standard jobs cost v under the simple costing system than under the activity-based costing system. Special jobs cost Relative to the ABC system, the simple costing system v standard jobs and V special jobs. Requirement 4. How might Artprint use the new cost information from its activity-based costing system to better manage its business? O A. Under the simple system, Artprint was making a gross margin of 21% on each standard job and 9% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 13% on each standard job and about 14% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market special jobs more aggressively than before. OB. Under the simple system, Artprint was making a gross margin of 9% on each standard job and 21% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 14% on each standard job and about 13% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market special jobs more aggressively than before. O C. Under the simple system, Artprint was making a gross margin of 9% on each standard job and 21% on each special job. But, the ABC system reveals that it is actually making a gross margin of about 14% on each standard job and about 13% on each special job. Depending on the market competitiveness, Artprint may either want to reprice the different types of jobs, or, it may choose to market standard jobs more aggressively than before. OD. None of the above. The new cost information would have no impact on how the company manages its business