The job-costing system at Marleys Decorative Bottles 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 320, an order of 16 cases of intricate personalized bottles, and Job 325, an order of six standard cases of personalized bottles . 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 each activity driver are as follows

Item	Budgeted overhead	Activity driver	Budgeted quantity of Activity Driver
Purchasing	$ 45,000	Purchase orders processed	1,800
Material handling	42,750	Material moves	5,700
Machine maintenance	186,240	Machine hours	15,520
Product inspection	22,000	Number of inspections	1,100
Packaging	32,000	Units produced	4,000
Total	$327,990

Information related to Job 320 and Job 325 follows. Job 320 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 320 Job 325

Number of purchase orders 30 8

Number of material moves 18 4

Machine hours 15 60

Number of inspections 12 5

Units produced 16 6

Required:

1. Compute the total overhead allocated to job under the 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.