Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting

Authors: Rowan Jones, Maurice Pendlebury

6th Edition

0273720368, 9780273720362

More Books

Students also viewed these Accounting questions

Question

When is the deadline?

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago