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5-29 Activity-based costing. The job-costing syst year. Comment on your solution. pools (purchasing, material handling, machine maintem at Shirley's Custom Framing has five indirect-cost pany

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5-29 Activity-based costing. The job-costing syst year. Comment on your solution. pools (purchasing, material handling, machine maintem at Shirley's Custom Framing has five indirect-cost pany is in the process of bidding on two jobs: Job 215 , an ore, product inspection, and packaging). The com325 , an order of six standard personalized frames. The an order of 16 intricate personalized frames, and Job under the current simple job-costing system and a newly controller wants you to compare overhead allocated budgeted costs in each indirect-cost pool and the budgety designed activity-based job-costing system. Total Information related to Job 215 and Job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 325. 1. Compute the total overhead 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 system using the appropriate activity drivers. 3. Explain why Shirley's Custom Framing might favor the ABC job-costing system over the simple jobcosting system, especially in its bidding process

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