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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

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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 Labor Indirect Materials Other Overhead Grinding $400,000 Polishing Product modification 500,000 Providing power System calibration 540,000 $110,000 $210,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 10,000 machine hours 10,000 machine hours 1,800 engineering hours 18,000 direct labor hours 1,400 batches Job 4286 2,250 units 5,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 180 units 550 MH 32 eng. hours 30 batches 450 DLH 32.eng. hours 90 batches 4,050 DLK Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing 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 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.) Job 3 Overhead Cost Activity Rate Activity driver incurre Activity Grinding & Polishing Product modification Providing power System calibration Activity Drivers Machine hours Engineering hrs. Direct labor hr batches Job 3175 Job 4286 Activity driver Overhead incurred assigned Overhead assigned Activity driver incurred 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.) Product DL hours Units Produced OH Cost per unit Job 3175 Job 4256 Plantwide on rate Total Overhead Cost 5 0.00 $ 0 $ 0.00 $ 0

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