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LU I Cause-and-Effect Relationship Between Standard Job Special Job Total Allocation Base and Activity Cost 2 Number of printing jobs S m Price per job 600 Cost of supplies per job 100 Direct labor costs per job 00 82 Printing machine-hours per job Cost of printing machine operations $ 75,000 Indirect costs of operating printing machines CO increase with printing machine-hours Setup-hours per job 10 Setup costs $ 45,000 Indirect setup costs increase with setup-hours Total number of purchase orders 400 500 12 Purchase order costs $ 18,000 Indirect purchase order costs increase with number of purchase orders 14 Design costs $4,000 $16,000 $ 20,000 Design costs are allocated to standard and special jobs based on a special study of the design department Marketing costs as a percentage of revenues 5% $ 19,500 $ 24,000 Demand for administrative resources increases 17 Administration costs with direct labor costs 1. Calculate the cost of a standard job and a special job under the simple costing system. Required 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 simple and activity-based costing systems differ in the cost of a standard job and a special job? How might Speediprint use the new cost information from its activity-based costing system to better manage its business? Page