Problem 17-1B Comparing plantwide rate method and activity-based costing P1 P3 BuiltRite Machining reports the following...

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Problem 17-1B Comparing plantwide rate method and activity-based costing P1 P3 BuiltRite Machining reports the following budgeted overhead cost and related data for the year. Activity Assembly Budgeted Cost Activity Cost Driver Budgeted Activity Usage $500,000 Machine hours (MH) 12,500 Product design Factory Engineering hours 30,000 600 (EH) Direct labor hours 20,000 1,250 services (DLH) Inspection 50,000 Inspections 500 Total $600,000 Table Summary: A table Page 699 Required 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 12,500 machine hours. 2. Job 55 used 150 machine hours and Job 66 used 220 machine hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity overhead rate for each activity using activity-based costing. 4. Allocate overhead costs to the following jobs using activity- based costing. Activity Usage Job Job Activity Cost Driver 55 66 Machine hours (MH) 150 220 Engineering hours 15 8 (EH) Direct labor hours 12 24 (DLH) Inspections 8 8 Table Summary: A table Problem 17-1B Comparing plantwide rate method and activity-based costing P1 P3 BuiltRite Machining reports the following budgeted overhead cost and related data for the year. Activity Assembly Budgeted Cost Activity Cost Driver Budgeted Activity Usage $500,000 Machine hours (MH) 12,500 Product design Factory Engineering hours 30,000 600 (EH) Direct labor hours 20,000 1,250 services (DLH) Inspection 50,000 Inspections 500 Total $600,000 Table Summary: A table Page 699 Required 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 12,500 machine hours. 2. Job 55 used 150 machine hours and Job 66 used 220 machine hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity overhead rate for each activity using activity-based costing. 4. Allocate overhead costs to the following jobs using activity- based costing. Activity Usage Job Job Activity Cost Driver 55 66 Machine hours (MH) 150 220 Engineering hours 15 8 (EH) Direct labor hours 12 24 (DLH) Inspections 8 8 Table Summary: A table