Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Grinding Polishing Product modification Providing power System calibratiorn Indirect Labor Indirect Materials Other Overhead $390,000 650,000 430,000 $115,000 $210,000 Additional information on the drivers for its production activities follows Grinding and Polishing 16,000 machine hours Product modification Providing power System calibration 1,400 engineering hours 15,000 direct labor hours 1,500 batches Required: 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate Overhead Cost Activity Drivers Activity Rate Grinding and Polishing Product modification Providing power System calibration 32 464 14 287 Machine hours Engineering hrs Direct labor hrs batches 0 per machine hour 0 per engineering hour 0 per direct labor hour 0 per batch Job 3175 110 units 250 MH Job 4286 1,375 units 2,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours 28 eng. hours 15 batches 20 eng. hours 45 batches 410 DLH 3,690 DLH 2. Determine overhead costs to assign to the following jobs using ABC. (Do not round your intermediate calculations. Round your activity rate answers to 2 decimal places and other answers to nearest whole dollar amount.) Job 3175 Activity Rate Grinding and Polishing Product modification Providing power System calibration Job 4286 Activity Rate Grinding and Polishing Product modification Providing power System calibration 2. Determine overhead costs to assign to the following jobs using ABC. (Do not round your intermediate calculations. Round your activity rate answers to 2 decimal places and other answers to nearest whole dollar amount.) Activity Rate Activity Driver Incurred Overhead Assigned ob 3175 Job 4286 Total overhead cost Number of units in job Average overhead cost per unit 4. If the company used a plantwide overhead rate based on direct labor hours, what would be the overhead cost for each unit of Job 3175? Of Job 4286? (Round OH cost per unit to 2 decimal places.) Plantwide OH rate Units Produced OH Cost per unit DL hours Total Overhead Cost Product Job 3175 Job 4286 0.00 S S 0.00 S 5. Compare the overhead costs per unit computed in requirements 3 and 4 for each job. Which method more accurately assigns overhead costs? (Round your answers to 2 decimal places.) Average Overhead Cost Job 3175 Job 4286 Using ABC Using plantwide rate