Question
Please show work AND ALL steps, please and thank you! Calculate Activity Based Costing Overhead Rates. *Everything you need to answer this question is provided
Please show work AND ALL steps, please and thank you! Calculate Activity Based Costing Overhead Rates.
*Everything you need to answer this question is provided below. * Please pass to another expert if you cannot answer, thanks!
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Windsor Company consisted of the following activities and costs:
Setup (2,500 setup hours) | $ 125,000 |
Production scheduling (150 batches) | 75,000 |
Production engineering (20,000 machine hours) | 265,000 |
Supervision (4,000 direct labor hours) | 85,800 |
Machine maintenance (1,025 repair requests) | 49,200 |
Total activity costs | $ 600,000 |
The following additional data were provided for Job 845:
Direct material costs | $1,450 |
Direct labor cost (5 Milling direct labor hours; 15 Finishing direct labor hours) | $500 |
Setup hours | 2 hours |
Production scheduling | 1 batch |
Machine hours used (15 Milling machine hours; 5 Finishing machine hours) | 20 hours |
Machine maintenance | 1 repair request |
(a) Calculate the cost per unit of activity driver for each activity cost category.
Round answers to two decimal places, if needed.
Setup | Answer |
Production scheduling | Answer |
Production engineering | Answer |
Supervision | Answer |
Machine operating | Answer |
(b) Calculate the cost of Job 845 using ABC to assign the overhead costs. $Answer (c) Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours of $30 per hour. (Round your answer to the nearest dollar.) $Answer (d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($30 per hour) and a direct hour overhead rate for the Finishing Department ($75 per hour). (Round your answer to the nearest dollar.) $Answer
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