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I can't figure out C... Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following
I can't figure out C...
Calculating Activity-Based 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) $288,000 Production scheduling (400 batches) 60,000 Production engineering (60 change orders) 180,000 Supervision (2,000 direct labor hours) 56,000 Machine maintenance (12,000 machine hours) 168,000 Total activity costs $752,000 The following additional data were provided for Job 845: $7,000 Direct materials costs Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours) $1,000 Setup hours hours Production scheduling batch Machine hours used (25 Milling machine hours; 30 5 Finishing machine hours) hours change Production engineering orders a. Calculate the cost per unit of activity driver for each activity cost category. Setup 288 Production scheduling cost $ 150 Production engineering cost $ 3000 Supervision cost 28 Machine operating cost 14 b. Calculate the cost of Job 845 using ABC to assign the overhead costs. Job 845 Direct materials cost 7000 Direct labor cost 1000 Manufacturing overhead costs: Setup costs 1440 Production scheduling 150 Production engineering 9000 Supervision 1120 Machine operations 420 Total cost 20130 c. Calculate the cost of Job 845 using a company-wide overhead rate based on machine hour Round rate to two decimal places. Company-wide overhead rate $ x per machine hourStep by Step Solution
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