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 a company-wide overhead rate based on machine hours. Round rate to two decimal places. Company-wide overhead rate $Answer per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed.

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.

Round rates to two decimal places, if needed. $Answer

per Milling Dept. machine hour $Answer per Finishing Dept. direct labor hour

Use rounded overhead rates calculated above for calculations below. Round cost answers to the nearest whole number, when needed.

Calculating Activity-Based Costing overhead Rates Assume that manufacturing overhead for Glassman Company in the previc consisted of the following activities and costs: $148,000 Setup (1,000 setup hours) Production scheduling (400 batches) 64,000 Production engineering (60 change orders) 120,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 84,000 $472,000 Total activity costs The following additional data were provided for Job 845 Direct materials costs $8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours) $2,000 5 hours Setup hours 1 batch Production scheduling Machine hours used (25 Milling machine hours 30 hours 5 Finishing machine hours) Production engineering 3 change orders