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)$118,000Production scheduling (400 batches)60,000Production engineering (60 change orders)150,000Supervision (2,000 direct labor hours)46,000Machine maintenance (12,000 machine hours)60,000Total activity costs$434,000

The following additional data were provided for Job 845:

Direct materials costs$7,000Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours)$1,000Setup hours5 hoursProduction scheduling1 batchMachine hours used (25 Milling machine hours;5 Finishing machine hours)30 hoursProduction engineering3 change orders

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

Setup