Bender Electric Motors produces electric motors used by home appliance and other manufacturing companies. Each motor is built to customer specications although the number of units requested may vary from 1 to as many as 2,000. Bender has recently adopted an activity-based costing system with the following overhead costs and drivers. Cost Pool Annual Amount Annual Activity Cost Driver Direct labor related $ 400,000 $1,000,000 Direct labor cost Material ordering 100,000 5,000 Purchase orders Material inspection 600,000 4,000 Receiving reports Equipment setup 200,000 1,000 Setups Quality control 400,000 2,000 Inspections of motors Machine related 800,000 40,000 Machine hours Miscellaneous 400.000 $4,000,000 Product costs other Total overhead $2,900,000 than miscellaneous = overhead Recently the company received an order from Krorner's Department Stores for 10 identical motors for use in aholiday display. Bender estimates the following costs and activities related to the order: Material cost $500 Labor cost $200 Purchase orders 2 Receiving reports 2 Setups 1 Inspections 1 Machine hours 10 Note that the costs indicated are for all 10 motorsthey are not per motor. REQUIRED a. Calculate the cost of the Kromer job using the new ABC system. b. Calculate the cost of the Kromer job assuming the company used a traditional costing sys- tem with labor cost as the only allocation base