Requirement 2. Calculate the cost of a standard job and a special job under the activity-based costing system.

Begin by calculating the allocation rates for the following activities.

Now, completing the table for total costs of standard jobs, special jobs, and then cost per job for each type of job.

	Standard
ABC Costing System	Job
Cost of supplies
Direct manufacturing labor costs
Indirect costs allocated:
Machine operations
Setups
Purchase orders
Design
Marketing
Administration
Total costs

Special

Job

2: Data Table

	A	B	C	D	E
1		Standard Job	Special Job	Total	Cause-and-Effect Relationship Between Allocation Base and Activity Cost
2	Number of printing jobs	1,600	800
3	Price per job	$1,800	$2,100
4	Cost of supplies per job	$150	$260
5	Direct labor costs per job	$190	$250
6	Printing machine-hours per job	10	10
7	Cost of printing machine operations			$696,000	Indirect costs of operating printing machines increase with printing machine-hours
8	Setup-hours per job	7	9
9	Setup costs			$588,800	Indirect setup costs increase with setup-hours
10	Total number of purchase orders	320	420
11	Purchase order costs			$27,380	Indirect purchase order costs increase with number of purchase orders
12	Design costs	$7,000	$34,000	$41,000	Design costs are allocated to standard and special jobs based on a special study of the design department
13	Marketing costs as a percentage of revenues	5%	5%	$228,000
14	Administration costs			$241,920	Demand for administrative resources increases with direct labor costs