Eco Systems specializes in servers for work group, e-commerce, and enterprise resource planning (ERP) Thus, it budgets only overhead costs for each activity. Pertinent data follow applications. The company's original job cost system has two direct cost categories: direct materials and direct Click on the icon to view ABC system data) Inbor. Overhead is located to jobs at the single rate of 521 per direct labor hour. Atask force headed by Eco's CFO recently designed on ABC system with four activities. The ABC system retain the current system's two direct Eco Systems has been awarded two new contracts that will be produced as Job A and Job B. Budput data relating cost categories to the contracts follow Click the icon to view the contract information) Read the roots Data Table X Data The JobA Job B 2.500 Activity Materials handling Machine up Assembling Shipping 11.000 10 Cost Allocation Rate 5 1.20 $ 520.00 90.00 $ 1,800.00 Allocation Base Number of parts Number of setups .. Assembling hours Number of shipments 220 1,100 1 1 Number of parts Number of setups Number of assembling hours Number of shipments Total direct labor hours Number of output units Direct materials cost. Direct labor cost 9200 100 800 10 Print Done $ 233,800 $ 99.200 185.000 $ 19.000 to the nearest whole percent Job Job B Directibor hours per unit Print Done Parts per un Setups per un Choose from any listo enter any number in the input fields and then continue to the next question D Type here to search O i 925/2020 i Requirements 1. Compute the product cost per unit for each job using the original costing system (with two direct cost categories and a single overhead allocation rate). 2. Suppose Eco Systems adopts the ABC system. Compute the product cost per unit for each job using ABC 3. Which costing system more accurately assigns to jobs the costs of the resources consumed to produce them? Explain. 4. A dependable company has offered to produce both jobs for Eco for $6,000 per output unit. Eco may outsource (buy from the outside company) Job A only, Job B only, or both jobs. Which course of action will Eco's managers take if they base their decision on (a) the original system? (b) ABC svstem costs? Which course of action will yield more income? Explain. produce th B. (Round Print Done Direct labor hours per unit Parts per unit Setups per unit % % Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search