$5-28$ Activity$-$based costing. The job costing system at Sheri'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.

$\backslash$table$[[$Purchasing$,$Budgeted Overhead,Activity Driver,$\backslash$table$[[$Budgeted Quantity$],[$of Activity Driver$]]],[$Material handling,$$35,000,$Purchase orders processed,$2,000],[$Machine maintenance,$43,750,$Material moves,$5,000],[$Product inspection,$118,650,$Machine$-$hours,$10,500],[$Packaging$,9,450,$Inspections,$1,200],[,19,950,$Units produced,$3,800]]$

Information related to Job $215$ and Job $325$ follows. Job $215$ incurs more batch$-$level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job $325.$

$\backslash$table$[[,$Job $215,$Job $325],[$Number of purchase orders,$25,8],[$Number of material moves,$10,4],[$Machine$-$hours,$40,60],[$Number of inspections,$9,3],[$Units produced,$15,6]]$

Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine$-$hours.

Compute the total overhead allocated to each job under an activity$-$based costing system using the appropriate activity drivers.

Explain why Sheri's Custom Framing might favor the ABC job$-$costing syste$$n over the simple job$-$costing system, especially in its bidding process.