Homework: Chapter 19 Comprehensive Problem Question 1, CP19-46 (si... Part 1 of 5 HW Score: 0%, 0 of 25 points O Points: 0 of 10 Save Using a job order costing system, Phyllo Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) Phyllo Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2020 follow: (Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Read the requirements. Requirement 1. Compute the total cost for each job using activity-based costing (ABC). The cost of direct labor is $30 per hour. Activity-based costing: Data Table Job 721 Job 722 - X Reference Direct costs: Activity Allocation Base Predetermined Overhead Allocation Rate $ 0.20 Standard costing (single plantwide rate): Job 721 Indirect costs: : Assembly Programming Testing Number of parts Number of direct labor hours Job 722 4.00 Direct materials $ 22.800 $ 2.100 Number of tests 80.00 Direct labor 24.900 8.217 1,500 495 Manufacturing overhead** Total costs X 55,917 S S 4.095 Total cost Data Table - Direct labor calculated as follows: : = Total direct labor costs per job Job Total Direct Materials Costs Total Number of Parts Total Direct Labor Hours Total Number of Tests Job 721 Hours per job X Direct labor cost per hour 830 XS 30 50 X S 30 S 24.900 Job 721 $ 2.700 830 40 Job 722 = S 1,500 22.800 2,100 Job 722 400 50 10 ** Manufacturing overhead calculated as follows: Total direct labor Predetermined OH allocation rate 33% costs per job 24.900 = Manufacturing OH allocated 8.217 Requirements Job 721 s = $ Job 722 S 1.500 33% = $ 495 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $30 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Phyllo Computer Company wants to earn an operating income equal to 40% of the total cost, what sales price should it charge each of these two customers? Print Done Print Done