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 2024 follow: Requirement 1. Compute the total cost for each job using activity-based costing (ABC). The cost of direct labor is $15 per hour. Activity-based costing: Job 721 Job 722 Direct costs: Indirect costs: MKUU Total costs Job 721 Job 722 Total costs S $ Desired operating income S $ Sales price Requirements 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $15 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 30% of the total cost, what sales price should it charge each of these two customers? Print Done Reference Job 722 2,700 Standard costing (single plantwide rate): Job 721 Direct materials $ 20,900 $ Direct labor* 11,850 Manufacturing overhead** 3,318 Total cost 36,068 $ 450 126 $ 3,276 = * Direct labor calculated as follows: Hours per job Direct labor cost per hour Total direct labor costs per job Job 721 790 * $ 15 = 5 11,850 Job 722 30 * $ 15 $ 450 ** Manufacturing overhead calculated as follows: Total direct labor Predetermined Manufacturing costs per job OH allocation rate OH allocated Job 721 $ 11,850 28% 3,318 Job 722 $ 450 28% $ 126 11 GA $ 11 Print Done Data table Activity Assembly Programming Testing Allocation Base Number of parts Number of direct labor hours Number of tests Predetermined Overhead Allocation Rate $ 1.00 3.00 160.00 Print Done - X Data table Total Number of Parts Total Direct Labor Hours Total Number of Tests Job Job 721 Job 722 Total Direct Materials Costs S 20,900 2,700 2,200 790 4 400 30 1 Print Done