The Atlas Corporation has a machining facility specializing in jobs for the aircraft-components market. Atlass previous simple job-costing system had two direct-cost categories (direct materials and direct manufacturing labor) and a single indirect-cost pool (manufacturing overhead, allocated using direct manufacturing labor-hours). The indirect cost-allocation rate of the simple system for 2015 would have been Tk.115 per direct manufacturing labor-hour. Recently a team with members from product design, manufacturing, and accounting used an ABC approach to refine its job-costing system. The two direct-cost categories were retained. The team decided to replace the single indirect-cost pool with five indirect-cost pools. The cost pools represent five activity areas at the plant, each with its own supervisor and budget responsibility. Pertinent data are as follows: 2

Activity Area	Cost Allocation Base	Cost Allocation Rate
Material Handling	Parts	Tk. 0.4
Lathe Work	Lathe Unit	0.2
Milling	Machine hour	20.00
Grinding	Parts	0.80
Testing	Units Tested	15.00

Information-gathering technology has advanced to the point at which the data necessary for budgeting in these five activity areas are collected automatically. Two representative jobs processed under the ABC system at the plant in the most recent period had the following characteristics:

Particulars	Job 410	Job 411
Direct material cost per job	Tk. 9,700	Tk. 59,900
Direct manufacturing labor cost per job	Tk. 750	Tk. 11,250
Number of direct manufacturing labor hours per job	25	375
Parts per job	500	2,000
Lathe turns per job.	20,000	59,250
Machine-hours per job...	150	1,050
Units per job (all units are tested)	10	200

Required: (i) Compute the manufacturing cost per unit for each job under the previous simple job-costing system. (ii) Compute the manufacturing cost per unit for each job under the activity-based costing system. (iii) Compare the per-unit cost figures for Jobs 410 and 411 computed in requirements i and ii. Why do the simple and the activity-based costing systems differ in the manufacturing cost per unit for each job? Why might these differences be important to Atlas Corporation?