Lumbar Ltd has been asked to submit a bid on two prospective jobs, one for Tarrant Ltd and the other for Kippo Ltd. The company uses a job costing system and applies overheads using machine hours. Total overhead for the year is expected to be $450000, and it is expected that 50000 machine hours will be worked. Addition information relating to the prospective jobs is as follows: The Council of Community Colleges of Janaica Page II ACCT2SII a. Using the traditional job costing system, calculate the total cost of each job. a. Using the traditional job costing system, calculate the total cost of each job. NB. Show the calculation of the OAR. (7 marks) Lumbar is concemed that the company may be over-or-under-pricing the jobs on which they bid. The company has decided to use activity based costing to estimate the cost of future jobs. Lumbar has assembled the following information: b. Compute the activity rate for each activity. (6 marks) c. Compute the total cost of each job using activity based costing. (12 marks) Lumbar Ltd has been asked to submit a bid on two prospective jobs, one for Tarrant Ltd and the other for Kippo Ltd. The company uses a job costing system and applies overheads using machine hours. Total overhead for the year is expected to be $450000, and it is expected that 50000 machine hours will be worked. Addition information relating to the prospective jobs is as follows: The Council of Community Colleges of Janaica Page II ACCT2SII a. Using the traditional job costing system, calculate the total cost of each job. a. Using the traditional job costing system, calculate the total cost of each job. NB. Show the calculation of the OAR. (7 marks) Lumbar is concemed that the company may be over-or-under-pricing the jobs on which they bid. The company has decided to use activity based costing to estimate the cost of future jobs. Lumbar has assembled the following information: b. Compute the activity rate for each activity. (6 marks) c. Compute the total cost of each job using activity based costing. (12 marks)