= Homework: Chapter 7 Question 12, E7-25A (si... Part 1 of 13 HW Score: 39.52%, 4.74 of 12 points Points: 0 of 1 Save Erickson Fabricators completed two jobs in June. Erickson Fabricators recorded the following costs assigned to the jobs by the company's activity based costing system: (Click the icon to view the costs.) Job 622 required 3,400 parts, 77,500 lathe turns, and 1,400 machine hours. All 375 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. 3. 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? A nearby company has offered to test all product units for $10 each. Based on ABC data, should Erickson 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 lathe work cost or the grinding cost is inaccurate. Both costs were assigned based on the number of Thus, the ratio of Job 409 cost to Job 622 cost should be the same as the ratio of Job 409 cost to Job 622 cost. materials handling cost or the grinding materials handling cost or the lathe work milling cost or the testing Costs Allocated Cost Activity Allocation Base Job 409 Job 622 Materials handling Number of parts $ 600 $ 1,800 Lathe work Milling Number of lathe turns 4,700 15,500 Grinding Number of machine hours Number of parts 4,000 28,000 306 1,530 Testing Number of output units 120 3,000 Print Done