Ramsey Company has established the following cost pools for 2020:

Cost Pools

Overhead Costs ($) Cost Drivers Level Maintenance 20,000 Machine hours 10,000 Materials handling 25,000 Number of material

handlings

250 Machine setup 30,000 Setup hours 1,000 Inspection 25,000 Number of inspections 500

Total 100,000

The following information pertains to two jobs completed during January 2020: Item Job X Job Y Direct materials cost $10,000 $7,500 Direct labour cost $8,000 $5,500 Number of units 2,000 1,500 Direct labour hours 640 400 Machine hours 700 650 Number of material handlings 40 15 Number of setup hours 80 40 Number of inspections 35 15

Required: c) Evaluate which of the two methods produces more accurate estimates of job costs. [5 marks]