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Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Windsor Company consisted of the following activities and costs: Setup (2,500 setup hours) $ 125,000
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Windsor Company consisted of the following activities and costs: Setup (2,500 setup hours) $ 125,000 Production scheduling (150 batches) 75,000 Production engineering (20,000 machine hours) 265,000 Supervision (4,000 direct labor hours) 85,800 Machine maintenance (1,025 repair requests) 49,200 Total activity costs $ 600,000 The following additional data were provided for Job 845: Direct material costs $1,450 Direct labor cost (5 Milling direct labor hours; 15 Finishing direct labor hours) $500 Setup hours 2 hours Production scheduling I batch Machine hours used (15 Milling machine hours; 5 Finishing machine hours) 20 hours Machine maintenance 1 repair request (a) Calculate the cost per unit of activity driver for each activity cost category. Round answers to two decimal places, if needed. 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 plantwide overhead rate based on machine hours of $30 per hour. (Round your answer to the nearest dollar.) $ (d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($30 per hour) and a direct hour overhead rate for the Finishing Department ($75 per hour). (Round your answer to the nearest dollar.) $
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