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