Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with this activity based cost problem I will upload. Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in
I need help with this activity based cost problem I will upload.
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(1,000setup hours)................................................$146,000 Production Scheduling (400batches)................................60,000 Production Engineering (60 change orders).....................90,000 Supervision (2,000 direct labor hours)...............................56,000 Machine Maintenance (12,000 machine hours)..............96,000 Total Activity Costs............................................................$460,000 The following additional data were provided for Job 845: Direct Materials Costs...................................................................................................... $8,000 Direct labor cost (5 Milling direct labor hours; 35 Finishing direct labor hours)........1000 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 Required a. Calculate the cost per unit of activity driver for each activity cost category. b. Calculate the cost of Job 845 using ABC to assign the overhead costs. c. Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours calculated in the previous exercise. 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 Data for 2014 to solve (d) Milling Department manufacturing overhead......................................................... $362,000 Finishing Department manufacturing overhead........................................................130,000 Machine hours used Milling Department................................................................................................ 10,000 hours Finishing Department..............................................................................................2, 000 hours Labor hours used Milling Department................................................................................................ ....1,000 hours Finishing Department................................................................................................. 1,000 hoursStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started