The job costing system at Steph's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, andpackaging). 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.

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.

1.	Compute the total overhead allocated to each job under a simple costingsystem, 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 Steph's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process.

	Job 215	Job 325
Number of purchase orders	27	5
Number of material moves	12	4
Machine-hours	20	80
Number of inspections	7	3
Units produced	16	4

	Budgeted Overhead	Activity Driver	Budgeted Quantity of Activity Driver
Purchasing	$39,900	Purchased orders processed	2,100
Material handling	31,200	Material moves	5,200
Machine maintenance	160,000	Machine-hours	10,000
Product inspection	13,600	Inspections	1,700
Packaging	7,600	Units produced	3,800
Total	$252,300