5-29 Activity-based costing. The job-costing system at Melody's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs: Job 220, an order of 17 intricate personalized frames, and Job 330, an order of 5 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect-cost pool and the budgeted quantity of activity driver are as follows. Budgeted Overhead $28.500 47,700 Budgeted Quantity of Activity Driver 1,500 TFT 100,000 6,800 13,200 $196,200 Activity Driver Purchase orders processed Material moves Machine-hours Inspections Units produced 5,300 10,000 1,700 1,300 Purchasing Material handling Machine maintenance Product inspection Packaging Information related to Job 220 and Job 330 follows. Job 220 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330. Job 220 Job 330 Number of purchase orders 21 9 Number of material moves 18 6 Machine-hours 30 70 Number of inspections 10 2 Units produced 17 Required 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.