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Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job
Required: 5. If the company uses 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.) Product DL hours Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286 Plantwide OH rate $ 0.00 0.00 $ $ Job 3175 Activity Rate Job 4286 Activity driver Overhead incurred assigned Activity driver incurred Overhead assigned hours ing hrs. or hrs. 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 220 units 450 MH Job 4286 2, 750 units 4,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours 20 eng. 33 eng. hours 25 batches 470 DLH hours 75 batches 4, 230 DLH 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.) Line 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. Ind Indirect Materials Other Overhead Indirect Labor $400,000 $180,000 Production Activity Grinding Polishing Product modification Providing power System calibration 450,000 $ 235,000 420,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 12, 000 machine hours 12,000 machine hours 1, 700 engineering hours 15, 000 direct labor hours 1, 200 batches
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