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! Required information [The following information applies to the questions displayed below.) Craft Pro Machining produces machine tools for the construction industry. The following details
! 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 Labor $310,000 Indirect Materials Other Overhead $200,000 Production Activity Grinding Polishing Product modification Providing power System calibration 400,000 $ 235,000 570,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 9,000 machine hours 9,000 machine hours 1,300 engineering hours 14,000 direct labor hours 800 batches Job 4286 2,500 units 4,500 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 200 units 450 MH 28 eng. hours 30 batches 440 DLH 28 eng. hours 90 batches 3,960 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: 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.) Job 3175 Overhead Cost Job 4286 Activity driver Overhead incurred assigned Activity Drivers Activity Rate Activity driver incurred Activity Grinding & Polishing Overhead assigned Machine hours Product modification Engineering hrs. Direct labor hrs. Providing power System calibration batches 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.) DL hours Units Produced OH Cost per unit Product Job 3175 Job 4286 Plantwide OH Total Overhead Cost rate $ 0.00 $ $ 0.00 $ 0
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