4+ Automatic Zoom v 5-29 Activity-based costing. 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 220, an order of 17 intricate personalized frames, and Job 330, an order of 5 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. Budgeted Quantity of Budgeted Overhead Activity Driver Activity Driver Purchasing $ 28,500 Purchase orders pracessed 1,500 Material handling 47,700 Material moves 5,300 Machine maintenance 100,000 Machine-hours 10,000 Product inspection 6,800 Inspections 1,700 Packaging 13,200 Units produced 3,300 $196,200 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. Joh 220 Job 330 Number of purchase orders 21 ] Number of material moves 18 B Machine-hours 30 70 MNumber of inspections 10 2 Units produced 17 5 View as Toxt [Downioad] M| o Number of inspections 10 Units produced 17 Required 1. Compute the total overhead allocated to each job under a simple costing system. where overhead is allocated based on machine-hours. 2. Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers. 3. Explain why Melody's Custom Framing might favor the ABC job-costing system over the simple job-costing system, especially in its bidding process. simple ] ystem, Decially 17-24 Weighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1) 100 $ 459,888 $ 142,570 Started in May 2017 510Physical Units Direct Conversion (Watches) Materials Costs Completed during May 2017 450 Ending work in process (May 31) 160 Total costs added during May 2017 $3,237.000 $1,916,000 # Degree of completion: direct materials, 80%: conversion costs, 35%. * Degree of completion: direct materials, 80%; conversion costs, 40%. Required: 17-25 Weighted-average method, assigning costs (continuation of 17-24). Required: For the data in Exercise 17-24, summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to the units completed (and transferred out) and units in ending work in process