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3 Digiprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Digiprint classifies its various printing jobs as standard jobs or special jobs. i (Click the icon to view additional information.) To see how activity-based costing would affect the costs of standard and special jobs, Digiprint collects the following information for the fiscal year 2020 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 three decimal places, X.XXX and your final answers to the nearest cent, X.XX.) Standard Simple Costing System Job Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job Total costs Requirements 1. Calculate the cost of a standard job and a special job under the simple costing system. 2. Calculate the cost of a standard job and a special job under the activity-based costing system. 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? 4. How might Digiprint use the new cost information from its activity-based costing system to better manage its business? Data table Cause-and-Effect Relationship Between Allocation Base and Activity Cost 1 Standard Job Special Job Total 1,400 700 $ 1,400 $ 1,900 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job $ 150 $ 290 $ 120$ 180 101 10 Indirect costs of operating printing machines 525,000 increase with printing machine-hours 3 8 7 Cost of printing machine operations 8 Setup-hours per job 9 Setup costs 10 Total number of purchase orders S 274,400 Indirect setup costs increase with setup-hours 380 480 11 Purchase order costs $ 11,000 $ 38,000 $ 12 Design costs 13 Marketing costs as a percentage of revenues Indirect purchase order costs increase with 28,380 number of purchase orders Design costs are allocated to standard and special jobs based on a special study of the 49,000 design department 197,400 Demand for administrative resources increases 135,240 with direct labor costs 6% 6% $ 14 Administration costs $ More info Digiprint's simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Digiprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Digiprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Digiprint's ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs: design, purchasing, setup, printing machine operations, marketing, and administration