Question
The job costing system at Sheri's cuatom framing has five indirect cost pools( purchasing, material handling, machine maintenance, product inspection, and packaging). The company is
The job costing system at Sheri's cuatom 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 15 intricate personalised frames, and Jon 325, an irder of 6 standard personalised frames. The controller wants you to comapre overhead allocated under the current simple job costing system and a newly designed activity based job costing system.
Explain why Shens Custom framing might favour the ABC job costing system over the simple job costing system, especially in its bidding process.
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