ks Inc. uses the job order costing system. The company has been using a traditional costing system, which is manual using job order cost sheets, for many years, with manufacturing overhead allocated using direct labour hours. Total direct labour hours are estimated to be 50,000 for the upcoming year.

Management is considering switching to software programs that release materials and signals machines when to begin working. They also plan to adopt an activity-based costing system at the same time. The factory is divided into six activities, each with its own supervisor who is responsible for controlling costs. The following information is available for the upcoming year: The company has the following information available for two of the jobs they plan to complete:

Total Dollar Cost Driver Cost Amount Driver Material handling $960,000 Number of parts 2,400,000 Milling $420,000 Machine hours 21,000 Grinding $1,920,000 Number of parts 2,400,000 Assembly $28,500 Hours spent in assembly 5,700 Inspection $950,000 Number of units produced 38,000 Shipping $1,425,000 Number of orders shipped 950The company has the following information available for two of the jobs they plan to complete: Job A284 Job A285 Direct materials cost $9,700 $59,900 Direct labour cost $750 $11,250 Number of direct labour hours 25 375 Number of parts 500 2000 Number of machine hours 150 1050 Number of job orders shipped 1 1 Number of units 10 200 Number of hours in assembly 2 30