Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs: Setup (1.000 setup hours) $288,000 60,000 Production scheduling (400 batches) Production engineering (60 change orders) 180,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 168,000 $752,000 Total activity costs The following additional data were provided for Job 845: $7,000 Direct materials costs Direct labor cost (5 Milling direct labor hours: 35 Finishing direct labor hours) Setup hours Production scheduling 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 $ Production scheduling cost $ Production engineering cost $ Supervision cost $ Machine operating cost $ b. Calculate the cost of Job 845 using ABC to assign the overhead costs. Job 845 Direct materials cost Direct labor cost Manufacturing overhead costs: Setup costs Production scheduling Production engineering Supervision Machine operations Total cost $1,000 5 hours 1 batch S $

Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs: The tollowing additional data were provided for job 845 : a. caiculate the cost per unit of activity driver for each activity cost category. b. Calculate the cost of job 845 using ABC to assign the overhead costs. c. Calculate the cost of job s45 uring a company wide overhesd rate based on machine hours Round tate to two decimal places. Campany wide overhead rate 1 per machine haur Use tounded bverhead rate calculated above for calculations below pound cost answers to the nearest whole number, when needed. racalculate ble cost of job 8$5 using a machine bour departmental ove head rate for the Mifling Oepartment and a durect habor hour ove Round fates to tho decimal ploces if needed per Millinet Dept machine hour per finghing Dept, dered labor bout