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 $ 360,000 Polishing $ 190,000 Product modification 450,000 Providing power $ 230,000 System calibration 450,000 Additional information on the drivers for its production activities follows Grinding 13,000 machine hours Polishing 13,000 machine hours Product modification 1,700 engineering hours Providing power 19,000 direct labor hours System calibration 750 batches Job 3175 Job 4286 Number of units 140 units 1,750 units Machine hours 300 MH 3,000 MH Engineering hours 29 eng hours 32 eng hours Batches 25 batches 75 batches Direct labor hours 470 DLH 4,230 DLH Required 1 Classify each activity as unit level, batch level, product level, or facility level Grinding Polishing Product modification Providing power System calibration Required 2, 3 4 Compute the activity overhead rates using ABC Combine grinding and polishing into one cost pool Determine overhead costs to assign to the following jobs using ABC What is the overhead cost per unit for Job 3175 What is the overhead cost per unit for Job 4286 (Round your activity rate and average overhead cost per unit to 2 decimal places Round overhead assigned to the nearest whole dollar ) 5 If the company used 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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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		$	360,000
Polishing					$	190,000
Product modification			450,000
Providing power								$	230,000
System calibration			450,000

Additional information on the drivers for its production activities follows.


Grinding	13,000	machine hours
Polishing	13,000	machine hours
Product modification	1,700	engineering hours
Providing power	19,000	direct labor hours
System calibration	750	batches

Job 3175

Job 4286

Number of units

140

units

1,750

units

Machine hours

300

3,000

Engineering hours

eng.hours

Batches

batches

Direct labor hours

470

DLH

4,230

DLH

Required:
1.	Classify each activity as unit level, batch level, product level, or facility level.

Grinding

Polishing

Product modification

Providing power

System calibration

Required:

2, 3 & 4.

Compute the activity overhead rates using ABC. Combine grinding and polishing into one cost pool. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286?(Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned" to the nearest whole dollar.)

5.	If the company used 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.)