4. Activity-based job-costing system Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job costing system has one direct cost category (direct materials) and four indirect manufacturing cost pools. These four indirect-cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel. Indirect manufacturing cost pool Cost-allocation base Budgeted cost-allocation rate 1. Materials handling Component parts Dkr 8 per part 2. Machining Machine-hours Dkr 68 per hour 3. Assembly Assembly-line-hours Dkr 75 per hour 4. Inspection Inspection-hours Dkr 104 per hour Langeland recently purchased 50 can-packaging machines from Henriksen AS. Each machine has direct materials costs of Dkr 3000, requires 50 component parts, 12 machine-hours, 15 assembly-hours and 4 inspection-hours. Henriksen's prior costing system had one direct-cost category (direct materials) and one indirect-cost category (manufacturing overhead, allocated using assembly-hours). Required: 1 Present overview diagrams of the prior job-costing system and the refined activity-based job-costing system. 2 Calculate the unit manufacturing costs (using ABC) of each machine and the total manufacturing cost of the Langeland job. 3 The activity-based job-costing system of Henriksen has only one manufacturing direct-cost category: direct materials. A competitor of the Henriksen Company has two direct-cost categories at its manufacturing plant: direct materials and direct manufacturing labour. Why might Henriksen not have a direct manufacturing labour costs category in its job-costing system? Where are the manufacturing labour costs included in the Henriksen costing system? 4 What information might members of the team that refined the prior costing system find useful in the activity- based job costing system