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Problem 4-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine
Problem 4-3A Applying activity-based costing LO P1, P3, A1, A2, C3
[The following information applies to the questions displayed below.] 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 | $ | 310,000 | |||||||||
| Polishing | $ | 200,000 | |||||||||
| Product modification | 450,000 | ||||||||||
| Providing power | $ | 220,000 | |||||||||
| System calibration | 510,000 | ||||||||||
Additional information on the drivers for its production activities follows.
| Grinding | 15,000 | machine hours |
| Polishing | 15,000 | machine hours |
| Product modification | 1,900 | engineering hours |
| Providing power | 16,000 | direct labor hours |
| System calibration | 900 | batches |
| Job 3175 | Job 4286 | |||
| Number of units | 130 | units | 1,625 | units |
| Machine hours | 450 | MH | 4,500 | MH |
| Engineering hours | 26 | eng. hours | 22 | eng. hours |
| Batches | 10 | batches | 30 | batches |
| Direct labor hours | 480 | DLH | 4,320 | DLH |
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