Fastprint Corporation runs a small printing press. It does standard jobs as well as special jobs.

It has two direct cost?categories: direct materials and direct?labour, and a simple costing system that uses one indirect cost pool. Fastprint has typically allocated all indirect costs using printing?machine-hours as the allocation base.

Fastprint is worried about the accuracy of its costing?system, and is doing a study to implement an?Activity-Based costing system. The ABC study has broken out the single?indirect-cost pool into four?activity-based cost?pools, all of which have been determined to be?manufacturing-related overheads. The information revealed by the ABC study is given below.

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Standard Special Total Notes job job cost 1,000 500 Number of jobs of $ 1,500 $1,900 each type Price charged per job Cost of supplies per $ job SA 250 $ 320 Direct labor costs per $ 140 job Cost of printing machine operations Setup costs Purchase order costs SA $ 280 Repair and 4% 4% Maintenance costs (% of revenues) Other data: Printing machine- 10 10 hours per job Setup-hours per job 8 9 Total number of 300 500 purchase orders $324,000 Indirect costs of operating printing machines increase with total printing machine-hours spent. $495,000 Indirect setup costs increase with total setup-hours spent. $24,000 Indirect purchase order costs increase with the number of orders. $98,000 Repair and maintenance costs are a % of revenues Standard Special Total Notes job job cost 1,000 500 Number of jobs of $ 1,500 $1,900 each type Price charged per job Cost of supplies per $ job SA 250 $ 320 Direct labor costs per $ 140 job Cost of printing machine operations Setup costs Purchase order costs SA $ 280 Repair and 4% 4% Maintenance costs (% of revenues) Other data: Printing machine- 10 10 hours per job Setup-hours per job 8 9 Total number of 300 500 purchase orders $324,000 Indirect costs of operating printing machines increase with total printing machine-hours spent. $495,000 Indirect setup costs increase with total setup-hours spent. $24,000 Indirect purchase order costs increase with the number of orders. $98,000 Repair and maintenance costs are a % of revenues