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The job-costing system at Suzy's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the

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The job-costing system at Suzy'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 13 intricate personalized frames, and Job 325, an order of five 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. Requirements Data table 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 Suzy'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 . Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. = budgeted, mach. = machine, mat. = material, purch. = purchase, qty. = quantity.) Now calculate the total overhead allocated to each job under a simple costing system. (Round your answer to the nearest cent.) used: bgt. = budgeted, mach. = machine, maint. = maintenance, mat. = material, purch. = purchase, qty. = quantity, prod. = produced.) Requirement 3. Explain why Siobhan's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. (Select all choices that apply.) A. Marketing managers can use ABC information to bid for jobs more competitively because ABC provides managers with a more accurate reflection of the resources used for and the costs of each job. B. The manufacturing manager likely would find the ABC job-costing system more useful in cost management. Unlike direct manufacturing labor costs, the five indirect cost pools are systematically linked to the activity areas at the plant. The result is more accurate product costing. The manufacturing manager can seek to reduce both the level of activity (fewer purchase orders, less material handling) and the cost o each activity (such as the cost per inspection). C. The ABC job-costing system will always result in a lower allocation of overhead costs to jobs than the simple job-costing system. D. Implementing an ABC costing system will be less complex than a simple job-costing system

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