Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1A (please help!) . classify each activities unit level, batch level, product level or facility level. 1B. Compute the activity overhead rates using ABC. Combine

image text in transcribed1A (please help!) . classify each activities unit level, batch level, product level or facility level.

image text in transcribed

1B. Compute the activity overhead rates using ABC. Combine the grinding and polishing 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 3175? What is the overhead cost per unit for Job 4286?

image text in transcribed 1 C. what is the overhead cost for each unit of Job 3175? Of Job 4286?

image text in transcribed

Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Materials Other Overhead Indirect Labor $370,000 $185,000 Production Activity Grinding Polishing Product modification Providing power System calibration 500,000 $245,000 470,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 14,000 machine hours 14,000 machine hours 1,700 engineering hours 18,000 direct labor hours 1,500 batches Job 3175 180 units 350 MH Job 4286 2,250 units 3,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours 30 eng. 20 eng. 30 hours 10 batches 420 DLH hours 30 batches 3,780 DLH Grinding Polishing Product modification Providing power System calibration Job 3175 Job 4286 Activity driver Ovi incurred as: Overhead Cost Activity Drivers Activity Rate Activity driver incurred Overhead assigned ng & Polishing Machine hours st modification Engineering hrs. ing power Direct labor hrs. n calibration batches 0 Product DL hours Units Produced OH Cost per unit Job 3175 Plantwide OH rate $ 0.00 $ 0.00 Total Overhead Cost $ $ 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_2

Step: 3

blur-text-image_3

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

IT Audit Fundamentals Study Guide

Authors: Isaca

1st Edition

1604209402, 978-1604209402

More Books

Students also viewed these Accounting questions