The job costing system at Sheri'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 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 newy designed activity-based job-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	118,650	Machine-hours	10,500
Product inspection	9,450	Inspections	1,200
Packaging	19,950	Units produced	3,800
	$226,800

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.

	Job 215	Job 325
Number of purchase orders	25	8
Number of material moves	10	4
Machine-hours	40	60
Number of inspections	9	3
Units produced	15	6

(SHOW ALL YOUR WORK FOR THE FOLLOWING)

1.) Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours.

2.) Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers.

3.) Explain why Sheri's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process.