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The job costing system at Shelby's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is

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The job costing system at Shelby'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 jobs; Job 215, an order of 16 intricate personalized frames, and Job 325, an order of 4 standard personalized frames. The controller wants you to compare overhead alocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect cost pool and the budgeted quantity of activity driver are as follows. Click the icon to view the cost and driver data. (Click the icon to view the job data) Read the requirements Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours Begin by calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviations used: bgt budgeted, mach - machine, mal-material, purch purchase, aty. quantity) Budgeted overhead rate Simple costing system Now calculate the total overhead allocated to each job under a simple costing system. (Round your answer to the nearest cont.) Job 215 Job 325 Simple costing system Indirect cost allocated Requirement 2. Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers Choose from any list or enter any number in the input fields and then continue to the next question The job costing system at Shelby'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 jobs; Job 215, an order of 16 intricate personalized frames, and Job 325, an order of 4 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect cost pool and the budgeted quantity of activity driver are as follows. E (Click the icon to view the cost and driver data.) (Click the icon to view the job data) Read the requirements. Requirement 2. Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers (Round the allocation rates to three decimal places, X XOX. Abbreviations used: bgt budgeted, mache machine, maint maintenance, mat material, purch. = purchase aty = quantity, prod. - produced.) ABC allocation rate Purchasing Mat.handling Mach maint Inspection Packaging Now calculate the total overhead allocated to Job 215 and Job 325 under an activity based costing system dem a nd your w ers to the cert) (Round interim calculations to three ABC costing system Job 215 Job 325 Choose from any list or enter any number in the input fields and then continue to the next question The job costing system at Shelby'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 jobs; Job 215, an order of 16 intricate personalized frames, and Job 325, an order of 4 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect cost pool and the budgeted quantity of activity driver are as follows. (Click the icon to view the cost and driver data) Click the icon to view the job data) Read the requirements INUW Laulu wa UV J UU TUGUJUU JUU GLUHyubo y Cauld decimal places and your final answers to the nearest cont.) Job 215 Job 325 ABC costing system Overhead costs allocated: Purchasing Materials handling Machine maintenance Inspection Packaging Total costs Requirement 3. Explain why Sheby's Custom Framing might favor the ABC job-costing system over the simti bidding process (Select a choon that Requirement 3. Explain why Sheby's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. (Select all choices that apply.) A The ABC job-costing system will always result in a lower allocation of overhead costs to jobs than the simple job-costing system. B. The manufacturing manager likely would find the ABC job-costing system more useful in cost management. Unlike direct manufacturing labor costs, the five indirect cost pools are systematically linked to the activity areas at the plant. The result is more accurate product costing The manufacturing manager can seek to reduce both the level of activity (fewer purchase orders, los material handling) and the cost of each activity (such as the cost per inspection) C. Implementing an ABC costing system will be less complex than a simple job-costing system, D. Marketing managers can use ABC information to bid for jobs more competitively because ABC provides managers with a more accurate reflection of the resources used for and the costs of each job Choose from any list or enter any number in the input fields and then continue to the next question iting system at Shelby's Custom Framing has five indirect cost pools (purchasing, mana a mry, The and packaging). The company is in the process of bidding on two jobs; Job 215, an order of 16 intricate personalized frames, an Jer of 4 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-cost pod desinned activi.bacadab.casting evetom. Totalbudented.cnete in each indirect.cost.cool and the budanted.cuantity o the Data Table real lion ing Activity Driver Purchased orders processed Material moves Machine-hours Inspections Budgeted Overhead 27,000 61,200 140,000 7,800 7,000 243,000 osts Purchasing men Material handling proce Machine maintenance The A Product inspection The Packaging labor costi cost Imple Marica reflechomore moramo pecially Budgeted Quantity of Activity Driver 1,800 5,100 10,000 1,300 3,500 Units produced facturing duct ) and the Print Done oromo Accurate se from any list or enter any number in the input fields and then continue to the next question. and packaging). The company is in the process of bidding on two jobs; Job 215, an order of 16 intricate personalized frames, and der of 4 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing d a newly desioned activity.basediob.costing system Total budaated.costs in each indirect.cost nool and the hudapted quantity of a as follows: the icon to More Info requirements tion Information related to Job 215 and Job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 325. ging bosts Job 215 Job 325 ement 3. Expla process. (Sele Number of purchase orders stem, especially in lg system The ABC job- The manufactu labor costs, the costing. The m cost of each ad Implementing Number of material moves Machine-hours Number of inspections Units produced ct manufacturing Furate product handling) and the Print Done Marketing mar lio a more accurate se from any list or enter any number in the input fields and then continue to the next

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