Using a job order costing system, Peaton Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) Peaton Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2024 follow. (Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Read the requirements usung cost Total costs 47,080 $ 6,320 Requirement 2. Is the job cost greater or less than that computed under standard costing for each job? Why? The cost of the Job 721 using ABC is greater than the job cost under the standard costing (single-allocation base) system. Under the ABC costing system we can tell that this jo is consuming more resources than was being accounted for under the single-allocation-base system, causing Job 721 to be under costed under the standard costing system. The cost of the Job 722 using ABC is greater than the job cost under the standard costing (single-allocation base) system. Under the ABC costing system we can tell that this jobm is consuming more resources than was being accounted for under the single-allocation-base system, causing Job 722 to be under costed under the standard costing system system, overhead is allocated to the ty jobs based solely on a percentage of direct labor costs, using a single predetermined overhead allocation the way the two jobs actually use the company's resources (activities) rate. This costing system programming, and testing activities when allocating overhead costs to the two jobs. Because Under the costs are closer to the true costs of completing each job. takes into account assembling reflects the way the jobs actually use the company's resources Final check Using a job order costing system, Peaton Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) Peaton Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2024 follow (Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Read the requirements Requirement 1. Compute the total cost for each job using activity-based costing (ABC). The cost of direct labor is $23 per hour. Activity-based costing: Direct costs Total direct material costs Total direct labor costs Indirect costs Asssembly costs Programming costs Testing costs Total costs Job 721 Job 722 20.600 $ 2.600 18,400 2.070 2.000 480 2,400 270 3.600 000 47.080 S 320 Clear all Final check tonio Busin Smart Member Si. How to collect on.... Chapter 6: Audie Data table W ck Predetermined Overhead Activity Allocation Base Allocation Rate kth Assembly Number of parts $ rea Programming Number of direct labor hours 3.00 Testing Number of tests 150.00 Data table Job Job 721 Job 722 Print Done abor Total Direct Materials Costs Total Number of Parts Total Direct Labor Hours Total Number of Teste $ 20.000 2.000 800 2,000 800 24 30 F3 Print Done 000 000 4 % 95 54 MacBook Air 35 1 ST 16 &7 F R T Y +11 * 8 J A 6 Reference amp Standard costing (single plantwide rate): Direct materials Direct labor Manufacturing overhead" Total cost *Direct labor calculated as follows: Job 721 Job 722 $ 20,600 $ 2,600 18,400 2,070 1,840 207 ur 40,840 $ 4,877 Hours per job x Direct labor cost per hour Job 721 800 $ 23 Job 722 90 * $ 23 Total direct labor costs per job 18,400 2.070 Predetermined Manufacturing **Manufacturing overhead calculated as follows: Total direct labor Print Done 5 Reference Direct materials Direct labor Manufacturing overhead** Total cost * Direct labor calculated as follows: 20,600 $ 2,600 18,400 2,070 1,840 207 $ 40,840 $ 4,877 Hours per job Direct labor cost per hour Total direct labor costs per job Job 721 800 $ 23 = $ 18,400 Job 722 90 $ 23 11 $ 2,070 **Manufacturing overhead calculated as follows: Total direct labor Predetermined costs per job OH allocation rate Job 721 $ 18,400 10% $ Job 722 $ 2,070 10% 157 Print Done Manufacturing. OH allocated 1,840 207 -X ur. the he