E Menu Calculating Actlvity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs: Setup (1,000 setup hours) Production scheduling (400 batches) Production engineering (60 change orders) 120,000 Supervision (2,000 direct labor hours) Machine maintenance (12,000 machine hours) 84.000 Total activity costs 144,000 60,000 56,000 $464,000 The following additional data were provided for job 845: Direct materials costs Direct labor cost (5 Milling direct labor hours 35 Finishing direct labor hours) Setup hours Production scheduling Machine hours used (25 Milling machine hours; S Finishing machine hours) Production engineering a. Calculate the cost per unit of activity driver for each activity cost category. 7,000 $1,000 S hours 1 batch 30 hours 3 change orders per setup hour per batch per change Setup Production scheduling cost Production engineering cost per direct labor hour Supervision cost per machine hour Machine operating cost plplippattempt-2585707&cmid-160539&page 3 E Menu b. Calculate the cost of Job 845 using ABC to assign the overhead costs. Job 845 Direct materials cost Direct labor cost Manufacturing overhead costs: Setup costs Production scheduling Production engineering Supervision Machine operations Total cost c. Calculate the cost of Job 845 using a company-wide overhead rate based on machine hours Round rate to two decimal places Company-wide overhead rate Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. per machine hour Job 845 Direct materials cost Direct labor cost Manufacturing overhead cost Round rate to two decimal places. Company-wide overhead rate $per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Job 845 Direct materials cost Direct labor cost Manufacturing overhead cost Total cost d. Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department. 344,000 Milling Department manufacturing overhead Finishing Department manufacturing overhead $120,000 Machine hours used Milling Department Finishing Department Labor hours used Milling Department Finishing Department Round rates to two decimal places, if needed. 10,000 hours 2.000 hours 1,000 hours 1,000 hours per Milling Dept. machine hour per Finishing Dept. direct labor hour Use rounded overhead rates calculated above for calculations below Round cost answers to the nearest E Menu Machine hours used Milling Department Finishing Department Labor hours used Milling Department Finishing Department Round rates to two decimal places, if needed. 10,000 hours 2,000 hours 1,000 hours 1,000 hours per Milling Dept. machine hour per Finishing Dept. direct labor hour Use rounded overhead rates cal whole number, when needed. culated above for calculations below. Round cost answers to the nearest Job 845 Direct materials cost Direct labor cost Manufacturing overhead costs: Milling Department Fnishing Deptiment Total cost Check Finish attempt... Save Answers Previous page
