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Hi-- Please answer this 3 part question. Thanks! Required information [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools
Hi-- Please answer this 3 part question. Thanks!
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 Labor $340,000 Other Overhead Production Activity Grinding Polishing Product modification Providing power System calibration Indirect Materials $ 205,000 550,000 $ 230,000 510,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 13,000 machine hours 13,000 machine hours 2,000 engineering hours 18,000 direct labor hours 1,200 batches Job 4286 1,875 units 3,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 150 units 350 MH 27 eng. hours 10 batches 430 DLH 26 eng. hours 30 batches 3,870 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration Required: 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 above 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 Overhead Cost Activity Drivers Activity Rate Activity driver incurred Job 4286 Activity driver Overhead incurred assigned Overhead assigned Grinding & Polishing Machine hours Product modification Engineering hrs. Direct labor hrs. Providing power System calibration batches Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286Step by Step Solution
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