Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

only do question #5 Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company

only do question #5 image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $320,000 Production Activity Grinding Polishing Product modification Providing power System calibration $135,000 600,000 $255,000 500,000 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 1,5ee engineering hours 17,eee direct labor hours 400 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 200 units 550 MM 26 eng. hours 30 batches 500 DLH Job 4286 2,500 units 5,500 MH 32 eng. hours 90 batches 4,375 DLH 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 average overhead cost per unit to 2 decimal places.) Required: 2,3 & 4. Compute the activity overhead rates using ADC 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 average overhead cost per unit to 2 decimal places.) Overhead Cost $ 455.000 $ Activity Grinding & polishing Product modification Providing power System calibration 600,000 255,000 500,000 Activity Drivers 13,000 Machine hours 1,500 Engineering his 17,000 Direct laboris 100 batches Activity Rate 35 per machine hour 400 per engineering hour 15 per direct labor hour 1.250 per batch Job 3175 Activity driver incurred Overhead assigned 550 $ 19,21 26 10.40 500 7,50 30 375 Total Overhead cost $ M Number of units in job Average overhead cos por unit places verhead Cost s 455.000 600.000 255.000 500,000 Activity Drivers 13.000 Machine hours 1.500 Engineering his 17 000 Direct labor hrs. 400 batches Activity Rate 35 per machine hour 400 per engineering hour 15 per direct labor hour 1.250 per barch Job 3175 Job 4286 Activity driver incurred Overhead assigned Activity driver Overhead incurred assigned 550 $ 19.250 5.500 5 192,500 10.400 32 12.800 500 7500 4375 65.625 30 37500 90 112.500 Tocal overhead cost $ 74680 $ 383.425 Number of units in job 200 2.500 Average overhead cost per uns 3732 $ 153 37 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.) Overhead costs Direct labor hours per direct labor hour 17.000 Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286 500 4,375 $ 0.00 200 2,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Implementing Standardized Work Training And Auditing

Authors: Alain Patchong

1st Edition

146656363X, 978-1466563636

More Books

Students also viewed these Accounting questions