Castenet Company uses a volume-based costing system that applies overhead cost based on direct labor hours at $250 per direct labor hour. The company is considering adopting an activity-based costing system with the following data Activity Area Cost Driver Rate Materials Number of handiling arts $1.20 Number of turns Lathe work Number of Milling machine hours 16.00 GrindingNumber of parts Number of units tested Testing 12.00 The two jobs processed in the month of June had the following characteristics: Job A Job B Direct materials costs $10,000 $50,000 Direct labor costs $1,000 $10,000 G Search or type URL 3 gara.instructure.com/courses/10892/quizzes/24634/take/questions/360811 The two jobs processed in the month of June had the following characteristics Job A Job B Direct materials costs 10,000 $50,000 Direct labor costs 1.000 $10,000 Number of direct labor hours 40 400 Number of parts 500 2,000 Number of turns 25,000 50,000 Number of machine hours 140 1,000 Number of units in each job (all tested) 15 200 Required: 1. Compute the unit manufacturing cost of each job under the firm's current volume-based costing system. 2. Compute the unit manufacturing cost of each job under the activity-based costing system. the unit manufacturing cost for Jobs A and B computed in requirements 1 and 2. (a) Why do the two cost systems differ in their total cost for each job? b) Why might these differences be important to the Company Upload Choose a File G Search or type URL