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Using a job order costing system, Princeton Computer Company estimated the total cost of two jobs as follows: the con to view the estimates under

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Using a job order costing system, Princeton Computer Company estimated the total cost of two jobs as follows: the con to view the estimates under jo gosting Princeton 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 con to vw the ABC information) Click the icon to view the records for two client.) Read the requirements Requirements, compute the total cont for each job using activity-based conting (ABC) The cont of direct labor a $20 per hour Activity-based costing Job 721 Job 722 Direct costs Indirect con ing. Reference gan Job 722 asing 2,000 Standard costing (single plantwide rate): Job 721 Direct materials $ 21,500 $ Direct labor 15,000 Manufacturing overhead" 5,250 $ Total cost 41.750 $ 600 Job 7 210 2,810 * Direct labor calculated as follows: Hours per job 750 Direct labor cost per hour XS 20 Job 721 Total direct labor costs per job 15,000 S Job 722 30 20 600 ** Manufacturing overhead calculated as follows: Total direct labor costs per job 15,000 600 Predetermined OH allocation rate X Manufacturing OH allocated Job 721 $ 35% Job 722 5.250 35% $ 210 Print Done Data Table 721 Allocation Base Activity Assembly Programming Testing Predetermined Overhead Allocation Rate 0.10 Number of parts Number of direct labor hours Number of tests 5.50 120.00 Print Done cost for each job using activity-based costing (ABC). The cost of direct labor is $20 per hour. Joll Data Table Job Total Direct Materials Costs Total Number of Parts Job 721 Total Direct Labor Hours $ 21,500 Total Number of Tests Job 722 2,000 2,000 750 600 44 30 11 Print Done number in the input fields and then click Check Answer - X Requirements Jol 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $20 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. Princeton Computer Company wants to earn an operating income equal to 20% of the total cost, what sales price should it charge each of these two customers? Print Done

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