Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

0 Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, c3 The following information applies to the questions displayed below Craft Pro

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
0 Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, c3 The following information applies to the questions displayed below Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Grinding Polishing Product modification450,000 Providing pover Systen calibration $390, 000 $220,000 $235,000 580,000 Additional information on the drivers for its production activities follows Grinding Polishing 11,000 machine hours 11,000 machine hours Product modification Pronding power System calibration 1,700 engineering hours 14,000 direct labor hours 1,200 batches Job 3175 140 unitr 300 MH Job 4286 1,750 unsts 3,000 a Number of unit Machine hours Engineering hours Batches Direct labor hours 32 hours 20 eng. hours 75 batches 25 batches 480 DLH 4, 320 DL Problem 17-3A Part 1 Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polshing activities into a single cost pool. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 31757 what is the overhead cost per unit for Job 42867 Round your activity rate and average overhead cost per unit to 2 decimal pacea itond overhead assigned" to the nearest whole dollar) Overhead Activity driver Activity Rate Activity driver incurred Overhead Cost Activity Drivers Machine hours Grinding & Polishing Product modification Providing power System callbration Direct labor s. If the Job 42867 (Do not round intermediate calculations. Round "OH Cost per unit" a company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Or nswers to 2 decimal places) DL hoursP OH Total Overhead Cost Produced Product Job 3175 Job 4286

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Defense A Management Audit Readiness Guide

Authors: Ed Danter

1st Edition

3030924653, 978-3030924652

More Books

Students also viewed these Accounting questions

Question

Define promotion.

Answered: 1 week ago

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago