Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs:

The following additional data were provided for Job 845:

Required

a. Calculate the cost per unit of activity driver for each activity cost category.

b. Calculate the cost of Job 845 using ABC to assign the overhead costs.

c. Calculate the cost of Job 845 using the company-wide overhead rate based on machine hours calculated in the previous exercise.

d. Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department

Transcribed Image Text:

Setup (1,000 setup hours). $144,000 Production scheduling (400 batches).. 60,000 Production engineering (60 change orders). 120,000 Supervision (2,000 direct labor hours). 56,000 Machine maintenance (12,000 machine hours) 84,000 Total activity costs. $464,000