Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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.) $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jeff Jones

3rd Edition

1285424409, 978-1285423678

More Books

Students also viewed these Accounting questions