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The job costing system at Shirley'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 Shirley'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 14 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 job-costing system. Total budgeted costs in each indirect cost pool and the budgeted quantity of activity driver are as follows. B (Click the icon to view the cost and driver data.) i (Click the icon to view the job data.) i Requirements Read the requirements Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is alld then enter the applicable i More Info udgeted overhead rate 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 Shirley's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. i Data Table 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. Print Done Job 215 Job 325 Number of purchase orders 20 8 Budgeted Overhead Budgeted Quantity of Activity Driver 18 5 Activity Driver Purchased orders processed 30 70 $ 2,400 Number of material moves Machine-hours Number of Inspections Units produced 11 3 Material moves 5,100 14 6 Purchasing Material handling Machine maintenance Product inspection Packaging 31,200 61,200 120,000 11,200 13,200 Machine-hours 10,000 Inspections 1,600 Print Done Units produced 3,300 swer $ 236,800 Total

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