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. (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 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 three decimal places, X.XXX and your final answers to the nearest cent, X.XX.) Standard Special Job Job S 130.00 $ 260.00 Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job 170.00 220.00 634.74 634.74 934.00 $ 1.114.00 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 allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Direct manufacturing, Qty. = Quantity. Round the allocation rates to the nearest cent for all activities except Administration; round Administration to five decimal places, X.XXXXX.) ABC Allocation rate Machine operations J00 000 PIC 4 ASSyment O, USM Part 3 of 11 HW Score; @ Points: 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 following information for the fiscal year 2 (Click the icon to view the informatic Read the requirements. Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system. decimal places, X.XX Standard Special Job Job per $ of DM labor cost $ 130.00 $ 260.00 Simple Costing System Cost of supplies per job Direct manufacturing labor cost per job Indirect cost allocated to each job 170.00 220.00 per $ of sales 634.74 634.74 per inspection Total costs $ 934.00 $ 1,114.00 per machine-hour Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing si per purchase order Begin by calculating the allocation rates for the following activities. (Abbreviations used: $ = Dollar, DM = Administration to five decimal places, X.XXXXX.) ity. Round the allocatio per setup-hour ABC Machine operations Help me solve this Etext pages Get more help More info Requirements Ind int 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. 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? n. Print Done ct ma Print Done cation rate - X Data table I ja B D Cause-and-Effect Relationship Between Allocation Base and Activity Cost 1 Standard Job Special Job Total 2 Number of printing jobs 2,200 1,100 1,700 3 Price per job $ 1,400 $ 4 Cost of supplies per job $ 130 $ 260 5 Direct labor costs per job $ 170 $ 220 6 Printing machine-hours per job 10 10 s Indirect costs of operating printing machines 792,000 increase with printing machine-hours 7 8 7 Cost of printing machine operations 8 Setup-hours per job 9 Setup costs 10 Total number of purchase orders 370 11 Purchase order costs itie $ 653,400 Indirect setup costs increase with setup-hours 470 Indirect purchase order costs increase with $ 26,880 number of purchase orders Design costs are allocated to standard and special jobs based on a special study of the 37,000 $ 42,000 design department 6% S 297,000 Demand for administrative resources increases $ 283,360 with direct labor costs 12 Design costs 5,000 $ 13 Marketing costs as a percentage of revenues 6% 14 Administration costs Print Done