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Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $136,000 Production
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $136,000 Production scheduling (400 batches) 70,000 Production engineering (60 change orders) 60,000 Supervision (2,000 direct labor hours) 60,000 Machine maintenance (12,000 machine hours) 108,000 Total activity costs $434,000 The following additional data were provided for Job 845: Direct materials costs Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $7,000 $1,000 5 hours Setup hours Production scheduling 1 batch 30 hours Machine hours used (25 Milling machine hours;5 Finishing machine hours) Production engineering 3 change orders (a) Calculate the cost per unit of activity driver for each activity cost category. Setup Production scheduling Production engineering Supervision Machine maintenance (b) Calculate the cost of Job 845 using ABC to assign the overhead costs. (c) Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours. (Round your answer to the nearest dollar.) (d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($26 per hour) and a direct hour overhead rate for the Finishing Department ($96 per hour). (Round your answer to the nearest dollar.) %
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