Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs:

Setup (1,000 setup hours)	$148,000
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
Total activity costs	$472,000

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
Setup hours	5 hours
Production scheduling	1 batch
Machine hours used (25 Milling machine hours;
5 Finishing machine hours)	30 hours
Production engineering	3 change orders

a. Calculate the cost per unit of activity driver for each activity cost category.

Setup	$Answer per setup hour
Production scheduling cost	$Answer per batch
Production engineering cost	$Answer per change
Supervision cost	$Answer per direct labor hour
Machine operating cost	$Answer per machine hour

b. Calculate the cost of Job 845 using ABC to assign the overhead costs.

Job 845
Direct materials cost	$Answer
Direct labor cost	Answer
Manufacturing overhead costs:
Setup costs	Answer
Production scheduling	Answer
Production engineering	Answer
Supervision	Answer
Machine operations	Answer
Total cost	$Answer

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.

Job 845Direct materials cost$Answer

Direct labor costAnswerManufacturing overhead cost:Answer

Total cost$Answer

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.

Milling Department manufacturing overhead$348,000

Finishing Department manufacturing overhead$124,000

Machine hours used

Milling Department10,000 hours

Finishing Department 2,000 hoursLabor hours used

Milling Department1,000 hours

Finishing Department1,000 hours

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.

Job 845Direct materials cost$Answer

Direct labor costAnswer

Manufacturing overhead costs:

Milling Department Answer

Finishing Department Answer

Total cost $Answer