(E18-20) Glassman Company, accumulated the following data for 2012: Milling Department manufacturing overhead........................$344,000 Finishing Department manufacturing overhead....................$120,000 Machine hours used Milling Department.......................................................10,000 hours Finishing Department.....................................................2,000 hours Labor Hours Used Milling Department.........................................................1,000 hours Finishing Department.....................................................1,000 hours

(E18-21) Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs:

Setup (1,000 setup hours)..................................................$144,000 Production Scheduling (400 batches)..................................$60,000 Production Engineering (60 change orders)......................$120,000 Supervision (2,000 direct labor hours).................................$56,000 Machine Maintenance (12,000 machine hours)...................$84,000 Total Activity Costs.............................................................$464,000

The following additional date were provided for Job 845:

Direct Materials Costs............................................................$7,000 Direct Labor Costs (5 Milling direct labor hours; 35 Finishing direct labor hours)...........................................$1,000 Setup Hours..........................................................................5 hours Production Scheduling..........................................................1 batch Machine Hours used (25 Milling machine hours; 5 Finishing machine hours)..............................................30 hours Product Engineering................................................3 change orders

a. Calculate the cost per unit of activity driver for each activity cost category.

Setups = $144,000 / 1,000 = $144 per set up hour Production Scheduling = $60,000 / 400 = $150 per batch Production Engineering = $120,000 / 60 = $2,000 per change order Supervision = $56,000 / $2,000 = $28 per direct labor hour Machine Maintenance = $84,000 / 12,000 = $7 per machine hour

b. Calculate the cost of Job 845 using ABC to assign the overhead costs.

Direct Material = $7,000 Direct Labor = $1,000 Setups = $720 Production Scheduling = $150 Production Engineering = $6,000 Supervision = $1,120 Machine Maintenance = $210 Total Costs = $16,200

c. Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours calculated in the previous exercise.

Total Overhead = $464,000 Machine Hours = 12,000 Overhead Rate = $38.67

Direct Materials = $7,000 Direct Labor = $1,000 Overhead = $1,160 Total Costs = $9,160

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 (see E18-20).

Please help with Part D