Required information Problem 17-3A 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. Indirect Labor $330.000 Other Overhead Production Activity Grinding Polishing Product modification Providing power System calibration Indirect Materials $135,000 500,000 $245,000 560,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 10,000 machine hours 10,000 machine hours 1,900 engineering hours 14.000 direct labor hours 350 batches Job 3175 130 units 350 MH Job 4286 1,625 units ,500 MH 3 Number of units Machine hours Engineering hours Batches Direct labor hours 29 ng. 36cng. 10 hours hours 15 batches 450 DLH 45 batches 4,050 DLH Problem 17.2A Part 1 2ong. 36 eng. Engineering hours Ratches Direct labor hours hours 15 batches 450 DLK hours 45 batches 4,050 DLH Problem 17-3A 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 Batch level nces Prev 1 2 3 of 3 Next > eng. eng. 28 hours 36 hours Engineering hours Batches Direct labor hours 15 batches 450 DLK 45 batches 4.050 DER Problem 17-3A Parts 2, 3 & 4 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 42867 (Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned to the nearest whole dollar.) Activity Activity driver Grinding & Polishing Product modification Overhead Cost $ 465,000 500,000 245,000 560,000 Activity Drivers 10,000 Machine hours 1,900 Engineering hrs. 14,000 Direct labor hrs. 350 batches $ [ Activity Rate 46,50 per machine hour 263.16 per engineering hour 17.50 per direct labor hour 1.600.00 per batch Providing power System calibration Next activities into a single cost pool. per unit for Job 3175? What is the per unit to 2 decimal places. Round Job 3175 Activity driver incurred Job 4286 Activity driver Overhead incurred assigned vity Rate er machine hour mer engineering hour Overhead assigned 42,273 218.750 er direct labor hour er batch Problem 17-3A Part 5 Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unl Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Direct labor costs Plantwide OH Product DL hours Total Overhead Cost 24,500 220,500 Job 3175 Job 4286 $ $ Units Produced 130 1,625 0.00 0.00 OH Cost per unit $ 1,361.54 $ 980.31 $ TO
