Using a job order costing system, Porcelain Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) Porcelain Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2020 follow: (Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Read the requirements Data table Predetermined Overhead Allocation Rate Allocation Base $ 0.70 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: Job 721 Job 722 Reference Direct costs: Total direct material costs 22300 2700 Total direct labor costs 17480 2530 Standard costing (single plantwide rate): Indirect costs: Job 721 Asssembly costs Direct materials $ 22,300 $ Programming costs Direct labor 17,480 6,992 Testing costs Manufacturing overhead** $ 46,772 $ Total costs Total cost Activity Assembly Programming Testing Number of parts Number of direct labor hours 5.50 Job 722 Number of tests 140.00 2.700 2,530 1,012 Data table 6,242 Direct labor calculated as follows: Job Total Direct Materials Cost $ 22.300 Total Number of Parts 2,200 Total Direct Labor Hours 760 Total Number of Tests Hours per job Job 721 Requirements 28 Direct labor cost per hour S 23 Total direct labor costs per job $ 17,480 Job 721 760 = Job 722 2.700 450 110 7 Job 722 110 s 23 = $ 2.530 ** Manufacturing overhead calculated as follows: 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $23 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Porcelain Computer Company wants to earn an operating income equal to 40% of the total cost, what sales price should it charge each of these two customers? Total direct labor Predetermined Print Done Manufacturing OH allocated OH allocation rate costs per job 17,480 Job 721 $ 40% $ 6,992 Job 722 $ 2.530 X 40% $ 1,012 Print Done Print Done