26.

Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

Production Activity	Indirect Labor				Indirect Materials				Other Overhead
Grinding	$	400,000
Polishing					$	215,000
Product modification		500,000
Providing power									$	235,000
System calibration		510,000

Additional information on the drivers for its production activities follows.

Grinding	14,000	machine hours
Polishing	14,000	machine hours
Product modification	1,500	engineering hours
Providing power	14,000	direct labor hours
System calibration	250	batches

	Job 3175		Job 4286
Number of units	190	units	2,375	units
Machine hours	250	MH	2,500	MH
Engineering hours	28	eng. hours	22	eng. hours
Batches	5	batches	15	batches
Direct labor hours	460	DLH	4,140	DLH

Required: 1. Classify each activity as unit level, batch level, product level, or facility level.

2, 3 & 4. 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? (Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned" to the nearest whole dollar.)

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.)

Grinding Polishing Product modification Providing power System calibration 3175 Job 4286 Overhead Activity driverOverheacd Activity Overhead Cost Activity Drivers Activity Rate Activity driver incurred incurred Grinding & Polishing Product modification Providing power System calibration Machine hours Engineering hrs Direct labor hrs batches Plantwide OH rate Units Produced OH Cost per unit Product DL hours Total Overhead Cost Job 3175 Job 4286