CP19-46 (similar to) Using a job order costing system Pentucket Computer Company estimated the total cost of two jobs as (Click the icon to view the ABC information) follows (Click the icon to view the estimates under job costing) Click the con to viw the records for two clients) Pentucket Computer Company is now contadoring using an ABC system. Information about ABC costs and Read the requirements records for the same two jobs for 2020 follow Job 721 Job 722 Direct.com Total de material costs 21700 2200 Total direct labor costs 17850 840 Indirect both Assembly costs Programming costs Testing costs Total costs Choose from any list or enter any number in the input fields and then click Check Answer Check 4 ports Clear All remaining Standard costing (single plantwide rate): Job 721 Job 722 $ Direct materials Direct labor 21,700 $ 17,850 5,355 2,200 840 252 Manufacturing overhead** $ 44,905 $ 3,292 Total cost Direct labor calculated as follows: Hours per job x Il Total direct labor costs per job Direct labor cost per hour * $ 21 Job 721 850 = $ 17.850 Job 722 40 * $ 21 $ 840 ** Manufacturing overhead calculated as follows: Total direct labor Predetermined Manufacturing OH allocated costs per job X OH allocation rate Job 721 17.850 30% = = = 5,355 A A Job 722 840 30% $ 252 Predetermined Overhead Allocation Rate $ 0.20 Activity Allocation Base Assembly Number of parts Programming Nurnber of direct labor hours Testing Number of tests 5.00 90.00 Total Direct Materials Costs Total Number of Parts Total Direct Labor Hours Total Number of Tests Job Job 721 $ 21,700 3,000 850 20 Job 722 2,200 550 40 5 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $21 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Pentucket Computer Company wants to earn an operating income equal to 20% of the total cost, what sales price should it charge each of these two customers