Question: can you solve this question stap by stap please? Thank you. Fastprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials.





can you solve this question stap by stap please?
Thank you.
Fastprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Fastprint classifies its various printing jobs as standard jobs or special jobs. (Click the icon to view additional information.) - X More info Fastprint's simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Fastprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Fastprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Fastprint's ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs, design, purchasing, setup, printing machine operations, marketing, and administration. Print Done To see how activity-based costing would affect the costs of standard and special jobs, Fastprint collects the following information for the fiscal year 2020 that just ended. (Click the icoh to view the information.) Read the requirements. or afo Cause-and-Effect Relationship Between Allocation Base and Activity Cost 1 Standard Job Special Job Total 2 Number of printing jobs 1,400 700 $ 1,400 $ 1,900 3 Price per job 4 Cost of supplies per job $ 250 $ 280 5 Direct labor costs per job $ 130$ 230 10 10 6 Printing machine-hours per job Indirect costs of operating printing machines increase with printing machine-hours as $ 483,000 7 Cost of printing machine operations 8 Setup-hours per job 3 8 $ 254,800 Indirect setup costs increase with setup-hours 9 Setup costs 10 Total number of purchase orders 370 470 ob $ 11 Purchase order costs Indirect purchase order costs increase with 26,040 number of purchase orders Design costs are allocated to standard and special jobs based on a special study of the 51,000 design department $ 15,000 $ 36,000 $ 12 Design costs 4% 13 Marketing costs as a percentage of revenues 4% $ 131,600 Demand for administrative resources increases $ 154,350 with direct labor costs 14 Administration costs Print Done - X Requirements 1. Calculate the cost of a standard job and a special job under the simple costing system. 2. Calculate the cost of a standard job and a special job under the activity-based costing system. 3. Compare the costs of a standard job and a special job in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of a standard job and a special job? 4. How might Fastprint use the new cost information from its activity-based costing system to better manage its business? Print Done
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