Hello,

I need help with the following question. Please show calculations. Thank you!

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 (1,000 setup hours)

$92,000

Production scheduling (300 batches)

$24,000

Production engineering (70 change orders)

$70,000

Supervision (2,200 direct labor hours)

$66,000

Machine maintenance (13,000 machine hours)

$78,000

Total activity costs

$330,000

The following additional data were provided for Job 845:

Direct materials costs

$6,000

Direct labor cost (5 Milling direct labor hours, 25 Finishing direct labor hours)

$1,000

Setup hours

5 hours

Production scheduling

1 batch

Machine hours used (15 Milling machine hours; 5 Finishing machine hours)

20 hours

Production engineering

2 change orders

Questions:

1). Calculate the cost of Job 845 using the Plantwide Overhead Rate based on machine hours.