Reference el brr fo Standard costing (single plantwide rate): Job 721 Job 722 Direct materials 23,400 $ 2,500 ur Direct labor* 1,500 19,500 375 4,875 Manufacturing overhead 47,775 S 4,375 $ Total cost Direct labor calculated as follows: Total direct labor costs per job Hours per job Direct labor cost per hour X 25 19,500 780 $ Job 721 X 1,500 Job 722 60 X Manufacturing overhead calculated as follows: Manufacturing Predetermined Total direct labor OH allocated OH allocation rate costs per job X 4,875 25% Job 721 $ 19,500 X 375 25% Job 722 $ 1,500 X Print Done II II EA X Data Table Predetermined Overhead Allocation Rate Allocation Base Activity 0.25 $ Number of parts Assembly 3.50 Number of direct labor hours Programming 125.00 Number of tests Testing Done Print - X Data Table Total Number of Total Direct Labor Total Number of Total Direct Tests Hours Parts Materials Costs Job 8 780 2,500 23,400 Job 721 2 60 300 2,500 Job 722 Print Done Requirements 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $25 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Piedmont Computer Company wants to earn an operating income equal to 45% of the total cost, what sales price should it charge each of these two customers? Print Done