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3 Question (1 Point) The job-costing system at Melody'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 15 intricate personalized frames, and Job 325, an order of 6 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 activity driver are as follows Activity Driver Purchasing Material handling Machine maintenance Product inspection Packaging Budgeted Overhead $35,000 43,750 118,600 9,500 17,600 $224,450 Purchase orders processed Material moves Machine-hours Inspections Units produced Budgeted Quantity of Activity Driver 2,000 5,000 10,000 1,000 3.500 Information related to lob 220 and Job 330 follows. Job 220 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330. Job 215 25 10 40 Job 325 8 4 Number of purchase orders Number of material moves Machine-hours Number of inspections 60 3 9 Trending Courses ock Professional R.. Black Professional R... Amazon High Volu... Top Free Online Co... Product inspection 9,500 Inspections Packaging 17,600 Units produced $224,450 1,000 3,500 Information related to Job 220 and Job 330 follows. Job 220 Incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330. Job 215 Number of purchase orders 25 Number of material moves 10 Machine-hours 40 Number of inspections 9 Units produced 15 Job 325 8 4 60 3 6 2. The total overhead allocated to job 325 under a simple (traditional) costing system, where overfiead is allocated based on machine-hours. 897.8 945.27 1346.7 157.55 1296

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