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Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: The following additional data were provided

Calculating Activity-Based Costing Overhead Rates

Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs:

The following additional data were provided for Job 845:

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Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company consisted of the following activities and costs: Setup (1,000 setup hours) 5146,000 Production scheduling (400 batches) $60,000 Production engineering (60 change orders $90,000 Supervision (2,000 direct labor hours $56,000 Machine maintenance (12,000 machine hours 596,000 Total activity cost $448,000 The following additional data were provided for Job 845: Direct material costs $8,000 Direct labor cost (milling direct labor hours; 35 51,000 finishing direct labor hours Setup hours 5 hours Production scheduling 1 batch Machine hours used (25 milling machine hours; 5 30 hours finishing machine hours) Production engineering 3 charge orders a) Calculate the cost per unit of activity driver for each activity cost category. Setup Production scheduling Production engineering Supervision Machine operating b) Calculate the cost of Job 845 using ABC to assign the overhead costs. c) Calculate the cost of Job 845 using the plant wide 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 rate for the Milling Department (528 per hour) and a direct overhead rate fir the Finishing Department (5100 per hour). (Round your answer to the nearest dollar.)

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