Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Production Activity Grinding Polishing Product modification Providing power System calibrati $135,000 600,000 $255,000 500,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 13,000 machine hours 13,000 machine hours 1,500 engineering hours 17,000 direct labor hours 400 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 200 units 550 MH 26 eng. hours 30 batches 500 DLH Job 4286 2,500 units 5,500 MH 32 eng. hours 90 batches 4, 375 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration quired: 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool. termine overhead costs to assign to the above jobs using ABC. What is the overhead cost per unit for Job 3175? What is the erhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.) Job 3175 Activity Overhead Cost Activity Drivers Activity Rate Activity driver incurred Job 4286 Activity driver Overhead incurred assigned Overhead assigned Machine hours finding & polishing Poduct modification Eoviding power ystem calibration Engineering hrs. Direct labor hrs. 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.) Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 Job 4286
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started