Problem C-1A Applying activity-based costing LO P1, P2, A1 [The following information applies to the questions displayed below.) Craftmore 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 Material other Overhead Grinding $400,000 Polishing $155,000 Product modification 600,000 Providing power $260,000 System calibration 530,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 14,800 machine hours 14,000 machine hours 1,700 engineering hours 14,000 direct labor hours 1,350 batches Problem C-1A Part 1 Required: 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate. Activity Activity Rate per machine hour Overhead Cost Activity Drivers Machine hours Engineering his Direct labor hrs per engineering hour per direct labor hour batches per batch Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 180 units 100 MH 35 eng hours 30 batches 470 DLH Job 4286 2,250 units 4,000 MH 22 ong hours 90 batches 4,230 DLH 2. Determine overhead costs to assign to the following jobs using ABC. (Do not round your intermediate calculations. Round your activity rate answers to 2 decimal places and other answers to nearest whole dollar amount.) Activity Rate Activity Driver Incurred Overhead Assigned Job 3176 Grinding and Polishing Product modification Providing power System calibration Job 4280 Activity Rate Activity Driver Incurred Overhead Assigned Grinding and Polishing Product modification Providing power System Calibration Problem C-1A Part 3 Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 180 units 400 MH 35 eng hours 30 batches 470 DLH Job 4286 2,250 units 4,000 22 eng hours 90 batches 4,230 DLH 3. 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.) Job 3175 Job 4286 Total overhead cost Number of units in job Average overhead cost per unit Problem C-1A Part 4 Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 100 units 400 MH 35 en hour's 30 batches 470 DLH Job 4206 2,250 units 4,000 101 22 ens. hours 90 batches 4.230 LH 4. If the company used a plantwide overhead rate based on direct labor hours, what would be the overhead cost for each unit of Job 3175? Of Job 4286? (Round OH cost per unit to 2 decimal places.) Product Plantwide OH rate DL hours Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286 Problem C-1A Part 5 Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 180 units 400 MH 35 eng hours 30 batches 470 DLH Job 4286 2,250 units 4,000 H 22 eng. hours 90 batches 4,230 DLH 5. Compare the overhead costs per unit computed In requirements 3 and 4 for each job. (Round your answers to 2 decimal places.) Job 4286 Average Overhead Cost Job 3175 Using ABC Using plantwide rate
