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) $118,000

Production scheduling (400 batches) 30,000

Production engineering (60 change orders) 90,000

Supervision (2,000 direct labor hours)

64,000 Machine maintenance (12,000 machine hours)

84,000 Total activity costs $386,000

The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 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 Production scheduling $ Answer Production engineering $ Answer Supervision $ Answer Machine maintenance $ Answer

(b) Calculate the cost of Job 845 using ABC to assign the overhead costs. $ Answer

(c) Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours. (Round your answer to the nearest dollar.) $ Answer

(d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($31 per hour) and a direct hour overhead rate for the Finishing Department ($101 per hour). (Round your answer to the nearest dollar.) $ Answer