Kraftprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Kraftprint 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, Kraftprint collects the following information for the fiscal year 2020 that just ended. (Click the icon to view the information.) Read the requirements. More info Kraftprint's simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Kraftprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Kraftprint 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. Kraftprint'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. Data table A B C D Standard Special Job Total E Cause-and-Effect Relationship Between Allocation Base and Activity Cost 1 Job 2 Number of printing jobs 800 400 3 Price per job $ 1,500 $ 1,900 4 Cost of supplies per job $ 130 $ 300 5 Direct labor costs per job $ 200 S 260 6 Printing machine-hours per job 10 10 7 Cost of printing machine operations Indirect costs of operating printing machines increase with printing $ 252,000 machine-hours - X Data table Cost of priming mache operations 8 Setup-hours per job 9 Setup costs 7 8 Indirect setup costs increase with $ 211,200 setup-hours 10 Total number of purchase orders 400 500 11 Purchase order costs $ Indirect purchase order costs increase 26,100 with number of purchase orders 12 Design costs Marketing costs as a percentage of 13 revenues 14 Administration costs Design costs are allocated to standard and special jobs based on a special 30,000 $ 41,000 study of the design department $ 11,000 $ 6% 6% $ 117,600. Demand for administrative resources $ 121,440 increases with direct labor 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 Kraftprint use the new cost information from its activity-based costing system to better manage its business? I 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, XXX.) Standard Job Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job Total costs