5-28 Activity based costing the job costing system at Sheri's Custom Framing has five indirect cost pools (purchasing, material handing, machine maintenance, product inspection, & packaging). The Co. is in the process of bidding on two jobs: job 215, an order of 15 intricate personalized frames, & job 325, an order of 6 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system & a newly designed activity based job costing system. Total budgeted costs in each indirect cost pool & the budgeted quantity of activity driver are as follows. name/budgeted OH/activt driver/B. Qty driver purchasing $35000 purchase order processed 2,000 material handling 43750 material moves 5000 machine maintenance $118650 machine hours 10500 product inspection $9450 inspections 1200 packaging $19950 unit produced 3800 total budgeted overhead $226,800 information related to job 215 & job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that led to be purchased, moved & inspected relative to ob 325. Name job 215 job 325 # of purchase order 25 8 # of material moves 10 4 machine hours 40 60 # of inspections 9 3 units produced 15 6 1. compute the total overhead (OH) allocated to each job under a simple costing system, where overhead is allocated based on machine hours. 2. Compute the total overhead allocated to each job under an activity based costing using the appropriate activity drivers. 3. Explain why Sheri's Custom Framing might favor the ABC job costing system over the simple job-costing system, especially in its bidding process.