Hamilton Manufacturing Company

Direct materials 175,000

Materials handling 35,000

Grinding 300,000

Polishing 100,000

Product Modification 500,000

Providing Power 225,000

System Calibration 400,000

Machine Hours 37,500 units

Direct Labor Hours 15,000

Engineering hours 1,200

Batches 200

Materials handling based on direct material cost

Grinding based on machine hours

Polishing based on machine hours

Product Modification based on engineering hours

Providing Power based on direct labor hours

System Calibration based on batches

Job 231

Completed 1,675 units

Direct Materials 18,500

Direct labor hours 350

Machine hours 755

Engineering hours 245

Batches 35

Using the ABC Method find the activity overhead rates.

Once you have those activity rates find the total cost of Job 231 including materials and the cost per unit