Corporation owns a small printing press that prints? leaflets, brochures, and advertising materials. LaserprintLaserprint classifies its various printing jobs as standard jobs or special jobs.To see how? activity-based costing would affect the costs of standard and special?jobs, LaserprintLaserprint collects the following information for the fiscal year 20172017 that just ended.LaserprintLaserprint?’s simple? job-costing system has two?direct-cost categories? (direct materials and direct? labor) and a single? indirect-cost pool. LaserprintLaserprint operates at capacity and allocates all indirect costs using printing?machine-hours as the allocation base. LaserprintLaserprint 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. LaserprintLaserprint?’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.
Requirement 1. Calculate the cost of a standard job and a special job under the simple costing system.
Requirement 2. Calculate the cost of a standard job and a special job under the? activity-based costing system.Begin by calculating the allocation rates for the following activities.
?Now, completing the table for total costs of standard? jobs, special jobs and then cost per job for each type of job.