Problem 17-1A (Algo) Comparing plantwide rate method and activity-based costing LO P1, P3 Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Budgeted cost Activity Cost Driver Assembly Budgeted activity Usage $ 546,000 Direct labor hours (DLH) 13,000 Product design B4,000 Engineering hours (EH) 1,500 Electricity 28,000 Machine hours (MH) 10,000 Setup 70, eee Setups Total $ 728,000 400 Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 360 direct labor hours and Job 42 used 650 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1 3. Compute an activity rate for each activity using activity based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing, Activity Usage Activity Cost Driver Job 31 Job 42 Direct labor hours (DLH) 650 Engineering hours (EH) Machine hours (MH) 60 Setups 360 42 48 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Usage Activity Cost Driver Job 31 Job 42 Direct labor hours (DLM) 360 650 Engineering hours (EH) 42 48 Machine hours (MH) 50 Setups 60 7 5 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Numerator Denominator Required 2 > 3. Compute an activity rate for each activity using activity-based costing 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Usage Activity Cost Driver Job 31 Job 42 Direct labor hours (DLH) 360 Engineering hours (EH) 48 Machine hours (MH) 60 Setups 5 650 42 50 Complete this question by entering your answers in the tabs below. Required 1 Required2 Required 3 Required 4 Job 31 used 360 direct labor hours and Job 42 used 650 direct labor hours. Allocate overhead cost to each Job using the single plantwide overhead rate from part 1 Plantwide Overhead Rate Overhead Direct Labor Hours per Unit Allocated | Job 31 Job 42 3. Compute an activity rate for each activity using activity-based costing, 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Usage Activity Cost Driver Job 31 Job 42 Direct labor hours (DLH) 360 650 Engineering hours (EH) Machine hours (MH) 50 60 Setups 7 42 48 5 Complete this question by entering your answers in the tabs below. 1 Required 1 Required 2 Recured 3 Required 4 Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate' to 2 decimal places.) Budgeted Cost Budgeted Activity Usage Activity Rate Activity Assembly Product design Electricity Setup (Required 2 Required 4 > Setups 5 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Allocate overhead costs to Job 31 and Job 42 using activity-based costing. (Round "Activity Rate" to 2 decimal places.) Allocate overhead to Job 31 Activity Activity Usage Activity Rato Allocated Cost Assembly Product design Electricity Setup Total Allocate overhead to Job 42 Activity Activity Usage Activity Rate Allocated Cost Assembly Product design Electricity Setup Total Required 3
