Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 04-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.) Craft Pro Machining

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 04-3A 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 $320,000 Polishing $220,000 Product modification 450,000 Providing power $210,000 System calibration 520,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 19,000 machine hours 1,600 engineering hours 14,000 direct labor hours 1.250 batches Hamber of units Machine hours Engineering hours Batches Direct labor hours Job 3175 130 units 250 MM 29 eng. hours 25 batches 410 DLH Job 4286 1,625 units 2,500 MB ong 32 hours 75 batches 3,690 DLR Problem 04-3A Part 1 Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration Problem 04-3A Parts 2,3 & 4 Required: 2,36 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing costs 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 31757 What is the overhead cost per unit for Job 42867 (found your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned to the nearest whole dollar) Ja 217 Owiew Ally De Active ALIVY Omnia & Posting Product dicum Activy Drivers Machinebours Engineering Director Providing batches Problem 04-3A Part 5 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 31757 Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Product DL hours Plantwide OH Tata Total Overhead Coat Units Produced OH Coat per unit Job 3175 Job 4256

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Business Continuity Global Best Practices

Authors: Rolf Von Roessing

1st Edition

1931332150, 978-1931332156

More Books

Students also viewed these Accounting questions