Alexander Custom Furniture 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:

Alexander Custom Furniture has five indirect-cost pools (purchasing, material handling, machine maintenance, product inspection and packaging). The company is in the process of bidding on twojobs: 1) Job 0802: an order of 1 5 intricate personalised furniture. 2) Job 2408: an order of6 standard personalised furniture. The controller wants you to compare overhead allocated under the simple job-costing system and 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 _ _ _ Budgeted Quantity of ActIVIty Drlver Overhead Activity Driver Purchase orders Purchasing $70,000 4,000 processed Material _ $87,500 Material moves 10,000 handHng Machine _ $237,300 Machine-hours 21,000 maintenance Product _ _ _ $18,900 Inspections 3,780 Inspection Packaging $39,900 Units produced 7,980 $453,600