Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $330,000 Polishing $175,000 Product modification 450, 606 Providing power $220,000 System calibration 570,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 18,000 machine hours 18,000 machine hours 1,600 engineering hours 20.000 direct labor hours 150 batches Grinding Polishing Product modification Providing power system calibration 18,000 machine hours 18,000 machine hours 1,600 engineering hours 20,000 direct labor hours 158 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 130 units 588 MH 27 eng. hours 5 batches 440 DLH Job 4286 1,625 units 5,000 MH 34 hours 15 batches 3,968 DLH eng. 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cos pool. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 31 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) Overhead Cost Activity Rate Activity drive Activity Grinding & Polishing Product modification Providing power System calibration Activity Drivers Machine hours Engineering hrs. Direct labor hrs. batches S Prev 2 3 4 Next > Help Save & Exit Subm Saved information Job 3175 Job 4286 Activity driver Overhead incurred assigned Activity Rate Overhead assigned Activity driver incurred $ 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.) Plantwide OH OH Cost per Product DL hours Units Produced Total Overhead Cost unit Job 3175 S 0.00 $ 0 Job 4286 $ 0.00 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Proof Tax Shelters

Authors: Donald Jay Korn

1st Edition

0130509310, 978-0130509314

More Books

Students also viewed these Accounting questions