Question 10

Required information [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. Indirect Materials Other Overhead Indirect Labor $340,000 $170,000 Production Activity Grinding Polishing Product modification Providing power System calibration 400,000 $210,000 460,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 19,000 machine hours 19,000 machine hours 2,100 engineering hours 20,000 direct labor hours 400 batches Number of units Machine hours Job 3175 130 units 400 MH 30 eng. hours 20 batches 430 DLH Job 4286 1,625 units 4,000 MH 20 eng. hours 60 batches 3,870 DLH Engineering hours Batches Direct labor hours Required: 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool. Determine overhead costs to assign to the above 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 and average overhead cost per unit to 2 decimal places. Round "overhead assigned" to the nearest whole dollar.) Activity Overhead Cost Activity Drivers Activity Rate Grinding & Polishing Machine hours Product modification Engineering hrs. Providing power Direct labor hrs. System calibration batches Job 3175 Overhead assigned Activity driver incurred Job 4286 Activity driver Overhead incurred assigned