Question
Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect
Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 350,000 Polishing $ 160,000 Product modification 400,000 Providing power $ 205,000 System calibration 530,000 Additional information on the drivers for its production activities follows. Grinding 16,000 machine hours Polishing 16,000 machine hours Product modification 1,800 engineering hours Providing power 18,000 direct labor hours System calibration 1,500 batches Job 3175 Job 4286 Number of units 160 units 2,000 units Machine hours 250 MH 2,500 MH Engineering hours 27 eng. hours 20 eng. hours Batches 5 batches 15 batches Direct labor hours 490 DLH 4,410 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level.
Grinding Polishing Product modification Providing power System calibration Job 3175 Activity driver incurred Activity Overhead Cost Job 4286 Activity driver Overhead incurred assigned Activity Drivers Activity Rate Overhead assigned Machine hours Grinding & Polishing Product modification Engineering hrs. Direct labor hrs. Providing power System calibration batches Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286
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