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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 | $ | 370,000 | |||||||||
Polishing | $ | 165,000 | |||||||||
Product modification | 550,000 | ||||||||||
Providing power | $ | 265,000 | |||||||||
System calibration | 520,000 | ||||||||||
Additional information on the drivers for its production activities follows.
Grinding and Polishing | 12,000 | machine hours |
Product modification | 1,400 | engineering hours |
Providing power | 13,000 | direct labor hours |
System calibration | 850 | batches |
Job 3175 | Job 4286 | |||
Number of units | 170 | units | 2,125 | units |
Machine hours | 350 | MH | 3,500 | MH |
Engineering hours | 32 | eng. hours | 32 | eng. hours |
Batches | 15 | batches | 45 | batches |
Direct labor hours | 460 | DLH | 4,140 | DLH |
rev: 10_22_2020_QC_CS-236913
Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)
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