Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.
oblems TA & 2A-50 points Saved Required information IThe following information applies to the questions displayed below. Craftmore 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 Polishing Product modification Providing power System calibration 330,000 550,000 520,000 $125,000 $260,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 15,000 machine hours 1,600 engineering hours 20,000 direct labor hours 500 batches Job 3175 140 units Job 4286 1,750 units 3,000 MH Number of units Machine houra Engineering hours Batchers Direct labor hours 300 MH 33 eng. hours 10 batches 28 eng. hours 30 batches 450 DLR 4,050 DLB Job 3175 140 units 300 MH Job 4286 Number of units Machine hours Engineering hours Batcher Direct labor hours 1,750 units 3,000 MH 33 eng. hours 10 batches 28 eng. hours 30 batches 450 DLH 4,050 DLE 2. Determine overhead costs to assign to the following jobs using ABC. (Do not round your intermediate calculations. Roundo activity rate answers to 2 decimal places and other answers to nearest whole dollar amount.) Activity Driver Incurred Overhead Assigned ob 3175 Grinding and Polishing Product modification Providing power System calibration Activity Rate per machine hour per engineering hour per direct labor hour per batch Activity Driver Incurred Overhead Assigned ob 4286 Activity Rate " Grinding and Polishing Product modification Providing power System calibration
Job 3175 140 units 300 MH Job 4286 Number of units Machine hours Engineering hours Batches Direct labor hours 1,750 units 3,000 MH 33 eng. hours 10 batches 28 eng. hours 30 batches 450 DLH 4,050 DLH 3. What is the overhead cost per unit for Job 3175? What is the overhead cost per un per unit to 2 decimal places.) Job 3175Job 4286 Total overhead cost Number of units in job Average overhead cost per unit Job 3175 140 units 300 MH Job 4286 1,750 units 3,000 MH Number of units Machine hours Engineering hours Batches Direct labor hours 33 eng. hours 10 batches 28 eng. hours 30 batches 450 DLH 4,050 DLH 4. If the company used a plantwide overhead rate based on direct labor hours, what would be the ove 3175? Of Job 4286? (Round OH cost per unit to 2 decimal places.) 0 Units Plantwide OH Total overhead Cost produce OH Cost per unit Product rate 0.00 $ 0.00 $ Job 3175 Job 4286 Job 3175 140 units 300 MH Job 4286 Number of units Machine hours Engineering hours Batches Direct labor hours 1,750 units 3,000 MH 33 eng. hours 10 batches 28 eng. hours 30 batches 450 DLH 4, 050 DLH 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 ABC method Plantwide rate methood
