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E19-21. Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and costs: Setup
E19-21. Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and costs: Setup (2,500 setup hours) $125,000 Production scheduling (150 batches). 75,000 Production engineering (20,000 machine hours) 265,000 Supervision (4,000 direct labor hours).. 85,800 Machine maintenance (1,025 repair requests). 49,200 Total activity costs... $600,000 The following additional data were provided for Job 845: Direct materials costs. Direct labor cost (5 Milling direct labor hours; 15 Finishing direct labor hours). Setup hours Production scheduling Machine hours used (15 Milling machine hours; 5 Finishing machine hours). Machine maintenance $1,450 $ 500 2 hours 1 batch 20 hours 1 repair request Required a. Calculate the cost per unit of activity driver for each activity cost category. b. Calculate the cost of Job 845 using ABC to assign the overhead costs. c. Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours calculated in the previous exercise. d. Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling De- partment and a direct labor hour overhead rate for the Finishing Department (see E19-20)
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