The job-costing system at Sharon'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 six 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 each activity driver are as follows. (Click the icon to view the cost and driver data.) (Click the icon to view the job data.) Read the requirements. Requirements Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. Begin by calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate. material, purch. = purchase, qty = quantity.) Budgeted 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 Sharon's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. Data table = Simple costing system Print Done 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. Budgeted Overhead Activity Driver Budgeted Quantity of Activity Driver Job 215 Job 325 Purchasing $ 36,000 Purchased orders processed 2,400 Number of purchase orders 22 6 Material handling 37,100 Material moves 5,300 Number of material moves 18 6 Machine maintenance 120,000 Machine-hours 10,000 Machine-hours 20 80 Product inspection 5,600 Inspections 1,400 Number of inspections 12 5 Packaging 21,000 Units produced 3,000 Units produced 15 6 $ 219,700 Total