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 $400,000 Polishing) Product modification 650,000 Providing power System calibration 450,000 $175,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 12,000 machine hours 2,100 engineering hours 17,000 direct labor hours 750 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 140 units 300 MH 31 eng. hours 15 batches 420 DLH Job 4286 1,750 units 3,000 MH 20 eng. hours 45 batches 3, 780 DLH $235,000
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