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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 Grinding
Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Grinding Polishing Indirect Materials Indirect Labor Other Overhead 15 Product modification Providing power System calibration information on the drivers for its production activities follows. Grinding Polishing 19 machine hours 19 machine hours Product modificatio 1,700 engineering hours direct labor hours Providing power System calibration1,250 batches Job 4286 2,000, units Job 3175 160 units Number of units Machine hours MH 5,000 MH eng hours 30 batches Engineering hours Batches 32 eng, hours 90 batches Direct labor hours490 DLH Required 1. Classify each activity as unit level, batch level, product level, or facility level 4 410 DLH Grinding Product modification Providing power System calibration 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single 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 overnead cost per unit for Job 4286? (Round activity rate & avrage overhead coat per unit to 2 decimal places. Round overhead aasigned to nearest whole dollar Job 3175 Job 4286 Overhead Activity driver Overhead Activity Rate Activity Overhead Cost Activity Drivers Activity driver incurred Grinding& Polishing Machine hours Product modifcation Engineering hrs Providing powe Direct labor rs System calbration atches 5. If the company uses a plantaide 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.] Plantwide OH Units Produced Total Overhead Cost per DL hours Product rate unit Job 3175 Job 4288
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