! 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 $360,000 Production Activity Grinding Polishing Product modification Providing power System calibration $110,000 500,000 $215,000 470,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 12,000 machine hours 1,800 engineering hours 13,000 direct labor hours 250 batches Job 3175 200 units 350 MH Job 4286 2,500 units 3,500 MH eng. 32 Number of units Machine hours Engineering hours Batches Direct labor hours eng. hours 33 hours 35 batches 420 DLH 105 batches 3,780 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration 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 $360,000 $110,000 Production Activity Grinding Polishing Product modification Providing power System calibration 500,000 $215,000 470,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 12,000 machine hours 1,800 engineering hours 13,000 direct labor hours 250 batches Job 4286 2,500 units 3,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 200 units 350 MH eng. 33 hours 35 batches 420 DLH 32 eng. hours 105 batches 3,780 DLH 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 Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286 ! 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. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $360,000 Polishing $110,000 Product modification 500,000 Providing power $215,000 System calibration 470,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 12,000 machine hours 1,800 engineering hours 13,000 direct labor hours 250 batches Number of units Machine hours Job 3175 200 units 350 MH eng. 33 hours 35 batches 420 DLH Job 4286 2,500 units 3,500 MH 32 eng. hours 105 batches 3,780 DLH Engineering hours Batches Direct labor hours Required: 2, 3 & 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 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.) Job 3175 Job 4286 Activity driver Overhead incurred assigned Activity Overhead Cost Activity Rate Overhead assigned Activity driver incurred Grinding & Polishing Product modification Activity Drivers Machine hours Engineering hrs. Direct labor hrs. batches Providing power System calibration
