Cause-and-Effect Relationship Between Allocation Base and Activity Cost Standard Job Special Job Total 400 600 $ 100 $ Number of printing jobs Price per job Cost of supplies per job Direct labor costs per job Printing machine-hours per job Cost of printing machine operations 75,000 Indirect costs of operating printing machines increase with printing machine-hours $ 45,000 Indirect setup costs increase with setup-hours Setup-hours per job Setup costs Total number of purchase orders Purchase order costs 400 500 $ Design costs 4,000 $ 16,000 $ 18,000 Indirect purchase order costs increase with number of purchase orders 20,000 Design costs are allocated to standard and special jobs based on a special study of the design department 19,500 24,000 Demand for administrative resources increases with direct labor costs 5% Marketing costs as a percentage of revenues Administration costs 5% $ $ Speedprint Corporation owns a wall printing press that prints leaflets, brochures, and advertising materials Speediprint desifies its various printing jobs as standard jobs or specialjobs. (Click the icon to view additional information) To see how activity based costing would affect the costs of standard and specialjobs, Speediprint collect the following information for the fiscal year 2017 that just ended. Click the icon to view the information.) Read the requirements Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system. Round interim calculations to the decimal places, XBOX and your final answers to the nearest cont XOXOX) Standard Special Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job Total costs Requirement 2. Calculate the cost of a standard job and a special job under the activity based costing system Begin by calculating the location rates for the following activities (Abbreviations used: except Administration round Administration to five decimal places, X.XXXXX) - DowOM Direct manufacturing City Quantity Round the locations to the nearest ABC Alca Machine operations Setups Purchase orders Administration Now, completing the table for total costs of standard jobs, special jobs and then cont per job for each type of job. (Round your answers to the nearest whole dollar nearest cont.) ont cost per job. Round cont per job to the Standard Special ABC Coating System Cost of supplies Direct manufacturing labor costs Indirect costs allocated: Machine operations Setups Purchase orders Design Marketing Administration Total costs Cost of each job Requirement 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the simple and activity based costing systems differ in the cost of a standard job and a special job? Standard jobs cost under the simple costing system than under the activity based in syster Special boost under the simple cofing wytem than under the activity-based couting system. Relative to the ABC system the simple costing system and specialjobs Requirement 4. How might Speediprint use the new cost information from Is activity-based costing system to better manage its business? O A. Under the simple system, Speediprint was making a gross margin of 12% on each standard job and 25% on each specialjob. But, the ABC system reveals that it is actually making a gross margin of about 21% on each standard job and about 11% on each specialjob. Depending on the market competiveness, Speed print may either want to reprice the different types of jobs, or may choose to market special jobs more aggressively than before. O B. Under the simple systrm, Spaadiprint was making a gross margin of 12% on each standard job and 25% on each specialjob. But, the ABC system reveals that it is actually making a gross margin of about 21% on each standard lab and about 11% on each specialjob. Depending on the market competitiveness, Spoodiprint may either want to reprice the different types of jobs, or may choose to market standard jobs are aggressively than before. O c. Under the simple system, Speediprint was making a gross margin of 26% on each standard job and 12 on each specialjob. But, the ABC wystar reveals that it is actually making a gross margin of about 11% on each standard job and about 21% on each specialjob. Depending on the market competitiveness. Speediprint may either want to reprice the different types of jobs. or. It may choose to market special jobs more aggressively than before. OD. None of the above. The new cost information would have no impact on how the company manages its business