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i need solutions for questions 1-6 Problem 4-3A Applying activity-based costing C3 A1 A2 P1 P3 $255,000 Craft Pro Machining produces machine tools for the
i need solutions for questions 1-6
Problem 4-3A Applying activity-based costing C3 A1 A2 P1 P3 $255,000 Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding. $320,000 Polishing $135,000 Product modification 600,000 Providing power System calibration 500,000 Additional information on the drivers for its production activities follows. Grinding 13,000 machine hours Polishing 13.000 machine hours Product modification 1,500 engineering hours Providing power 17.000 direct labor hours System calibration 400 batches Required 1. Classify each activity as unit level, batch level, product level, or facility level. 2. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool 3. Determine overhead costs to assign to the following jobs using ABC. Job 3175 Job 4286 Number of units 200 units 2.500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng hours 32 eng hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH 4. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? 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? 6. Compare the overhead costs per unit computed in requirements 4 and 5 for each job. Which method more accurately assigns overhead costs? Check 44) Job 3175 $373.25 per unit Step by Step Solution
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