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HELP! Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Required information
HELP! Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.
Required information (The following information applies to the questions displayed below.) Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Materials Other Overhead Indirect Labor $360,000 Production Activity Grinding Polishing Product modification Providing power System calibration $155,000 650,000 $240,000 490,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 16, 000 machine hours 16,000 machine hours 1,600 engineering hours 15, 000 direct labor hours 1, 350 batches Number of units Machine hours Job 3175 180 units 250 MH Job 4286 2, 250 units 2.500 MH Job 4286 2,250 units 2,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 180 units 250 MH 20 eng. hours 15 batches 460 DLH 34 eng. hours 45 batches 4,140 DLH 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned to the nearest whole dollar.) Job 3175 Activity Activity Drivers Overhead Cost Ac Activity driver incurred Activity Rate Overhead assigned Grinding & Polishing Machine hours Product modification Engineering hrs. Providing power Direct labor hrs. System calibration batchesStep by Step Solution
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