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Franklin Fabricators completed two jobs in June. Franklin Fabricators recorded the following costs assigned to the jobs by the company's activity based costing system: E: (Click the icon to view the costs.) Job 622 required 3,000 parts, 50,000 lathe turns, and 1,000 machine hours. All 300 of the job's output units were tested. All units of Job 409 were tested. Requirements 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? 2. Disregard materials handling costs. How many parts were used for Job 409? How many lathe turns did Job 409 require? How many machine hours? How many units were produced in Job 409? 3. A nearby company has offered to test all product units for $10 each. Based on ABC data, should Franklin Fabricators accept or reject the offer? Give your reason. Requirement 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? Either the Thus, the ratio of Job cost is inaccurate. Both costs were assigned based on the number of V cost should be the same as the ratio of Job 409 409 cost to Job 622 cost to Job 622 cost. Requirement 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? Either the Thus, the ratio of Job cost is inaccurate. Both costs were assigned based on the number of cost should be the same as the ratio of Job 409 V cost to Job 622 409 cost lathe work cost or the grinding Costs materials handling cost or the grinding materials handling cost or the lathe work milling cost or the testing Allocation Base Activity Materials handling Allocated Cost Job 409 Job 622 S 750 $ 2,250 Number of parts Lathe work Number of lathe turns 15,000 Number of machine hours 5,100 3,700 300 Milling Grinding Testing 25,000 1,500 Number of parts Number of output units 126 2,700 Help Me Solve This Video Get More Help Requirement 1. How do you know that at least one of the costs recorded for the two jobs is inaccurate? Either the cost is inaccurate. Both costs were assigned based on the number of 409 cost to Job 622 cost should be the same as the ratio of Job 409 Thus, the ratio of Job cost. costs. lathe turns machine hours. output units. parts. services