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Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 380,000 Polishing $ 115,000 Product modification 550,000 Providing power $ 235,000 System calibration 560,000 Additional

Production Activity Indirect Labor Indirect Materials Other Overhead
Grinding $ 380,000
Polishing $ 115,000
Product modification 550,000
Providing power $ 235,000
System calibration 560,000

Additional information on the drivers for its production activities follows.

Grinding 15,000 machine hours
Polishing 15,000 machine hours
Product modification 1,300 engineering hours
Providing power 14,000 direct labor hours
System calibration 300 batches

Job 3175 Job 4286
Number of units 180 units 2,250 units
Machine hours 350 MH 3,500 MH
Engineering hours 27 eng.hours 22 eng.hours
Batches 10 batches 30 batches
Direct labor hours 500 DLH 4,500 DLH
Required:
1. Classify each activity as unit level, batch level, product level, or facility level.

2.

Required:

2, 3 & 4. Compute the activity overhead rates using ABC. Form cost pools as appropriate. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your activity rate to 2 decimal places.)

3.

Required:
If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)

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