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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 about
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 $320,000 Indirect Materials Other Overhead $145,000 Production Activity Grinding Polishing Product modification Providing power System calibration 450,000 $ 260,000 440,000 Additional information on the drivers for its production activities follows. Grinding 16,000 machine hours Polishing 16,000 machine hours Product 1,500 engineering modification hours Providing power 18,000 direct labor hours System calibration 400 batches Job 3175 130 units 350 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 4286 1,625 units 3,500 MH eng. hours 15 batches 4,500 DLH 29 eng. 20 hours 5 batches 500 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 Activity Job 4286 Activity Overhead driver Activity Drivers Activity Rate Overhead assigned Activity driver incurred incurred assigned Grinding & Polishing Product modification Machine hours Engineering hrs. Direct labor hrs. batches Providing power System calibration 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.) 0 Product DL hours Units Produced OH Cost per unit Job 3175 Job 4286 Plantwide OH rate $ 0.00 $ 0.00 Total Overhead Cost $ $
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