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S Question (2 points) The job-costing system at Melody's Custom Framing has five indirect cost pools (purchasing material handling machine maintenance, product inspection, and packaging).

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S Question (2 points) The job-costing system at Melody's Custom Framing has five indirect cost pools (purchasing material handling machine maintenance, product inspection, and packaging). The company is in the process of bidding on two fobs: Job 215, an order of 15 Intricate personalized frames, and Job 325, an order of 6 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based lob-costing system. Total budgeted costs in each indirect-cost pool and the budgeted quantity of activity driver are as follows Budgeted Overhead Activity Driver Budgeted Quantity of Activity Driver Purchasing $35,000 Purchase orders processed 2,000 Material handling 43,750 Material moves 5,000 Machine maintenance 118,600 Machine-bours 10,000 Product inspection 9,500 Inspections 1,000 Packaging 17,600 Units produced 3.500 S224,450 Information related to Job 220 and Job 330 follows. Job 220 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330. Job 325 8 Job 215 25 10 40 9 Number of purchase orders Number of material moves Machine-hours Number of inspections Units predhread 4 60 3 15 Machine maintenance Product inspection Packaging 118,600 9,500 17,600 $224,450 Machine-hours Inspections Units produced 10,000 1,000 3,500 Information related to Job 220 and Job 330 follows. Job 220 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330. Job 215 Number of purchase orders 25 Number of material moves 10 Machine-hours 40 Number of inspections 9 Units produced 15 Job 325 8 4 60 3 6 4. Manufacturing overhead cost per unit attributed to job 325 under the traditional costing is closest to 59.85 224.45 22.45 1349.7

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