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) Production scheduling (400 batches) Production engineering (60 change orders) Supervision (2,000 direct labor hours) Machine maintenance (12,000 machine hurs) Total activity costs $144,000 60,000 120,000 56,000 84,000 $464,000 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) Setup hours Production scheduling Machine hours used (25 Milling machine hours; 5 Finishing machine hours) Production engineering $7,000 $1,000 5 hours 1 batch 30 hours 3 change orders a. Calculate the cost per unit of activity driver for each activity cost category Setup Production scheduling cost $ Production engineering cost $ 0 per setup hour 0 per batch 0 per change Supervision cost 0 per direct labor hour Machine operating cost 0 per machine hour b. Calculate the cost of Job 845 using ABC to assign the overhead costs. Job 845 Direct materials cost Direct labor cost Manufacturing overhead costs