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Hello. You were great at helping me with homework questions in May. I am taking Managerial Accounting now and would love your help. Calculating ActivityBased
Hello. You were great at helping me with homework questions in May. I am taking Managerial Accounting now and would love your help.
Calculating ActivityBased 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) $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 data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (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 Production engineering 3 change orders a. Calculate the cost per unit of activity driver for each activity cost category. Setup Production scheduling cost Production engineering cost Answer $ per setup hour Answer $ per batch Answer $ per change Answer $ Supervision cost Machine operating cost Answer $ per direct labor hour per machine hour b. Calculate the cost of Job 845 using ABC to assign the overhead costs. Job 845 Direct materials cost Direct labor cost Answer $ Answer Manufacturing overhead costs: Setup costs Production scheduling Production engineering Answer Answer Answer Job 845 Answer Supervision Answer Machine operations $Answer Total cost c. Calculate the cost of Job 845 using a companywide overhead rate based on machine hours. Round rate to two decimal places. Companywide overhead rate $Answer 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 $Answer Answer Direct labor cost Answer Manufacturing overhead cost: $Answer 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. Milling Department manufacturing overhead $344,000 Finishing Department manufacturing overhead $120,000 Machine hours used Milling Department Finishing Department 10,000 hours 2,000 hours Labor hours used Milling Department 1,000 hours Finishing Department 1,000 hours Round rates to two decimal places, if needed. $Answer per Milling Dept. machine hour $Answer per Finishing Dept. direct labor hour Use rounded overhead rates calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Job 845 Direct materials cost Direct labor cost $Answer Answer Manufacturing overhead costs: Milling Department Answer Answer Finishing Department $Answer Total costStep by Step Solution
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