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 16 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. 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. (Round your answer to the nearest cent. Abbreviations used: bgt. = budgeted, mach. = machine, mat. = material, purch. = purchase, qty = quantity.) Budgeted overhead rate Simple costing system Bgt. total costs in indirect cost pool Bgt. total direct costs Bgt. total direct labor costs Bgt. total direct material costs Bgt. total qty of activity driver Total number of units sold Requirements 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. More Info 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 26 Job 325 5 14 3 Number of purchase orders Number of material moves Machine-hours Number of inspections Units produced 20 80 12 5 16 6 Print Done Data Table $ Purchasing Material handling Machine maintenance Product inspection Packaging Budgeted Overhead 25,600 32,900 150,000 11,200 12,400 Activity Driver Purchased orders processed Material moves Machine-hours Inspections Units produced Budgeted Quantity of Activity Driver 1,600 4,700 10,000 1,600 3,100 $ 232,100 Total Print Done