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1. a. b. c. ! Required information [The following information applies to the questions displayed below.) Craft Pro Machining produces machine tools for the construction

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! Required information [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. Indirect Labor $400,000 Other Overhead Production Activity Grinding Polishing Product modification Providing power System calibration Indirect Materials $175,000 450,000 $205,000 580,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 12,000 machine hours 2,000 engineering hours 20,000 direct labor hours 1,150 batches Job 3175 210 units 350 MH Job 4286 2,625 units 3,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours 33 eng. 32 eng. hours 35 batches 470 DLH hours 105 batches 4,230 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration Required: 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing costs into a single cost pool. Determine overhead costs to assign to the above jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned" to the nearest whole dollar.) Job 3175 Job 4286 Activity driver Overhead incurred assigned Activity Overhead Cost Activity Drivers Activity Rate Overhead assigned Activity driver incurred Grinding & Polishing Machine hours Product modification Engineering hrs. Providing power Direct labor hrs. System calibration batches Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Product DL hours Total Overhead Cost Units Produced OH Cost per unit $ Plantwide OH rate $ 0.00 $ 0.00 Job 3175 Job 4286 0 $ 0

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