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 transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage 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 $360, 809 Polishing $105, 060 Product modification 650, eea Providing power $240, 0Be System calibration 120, Bee Additional information on the drivers for its production activities follows. Grinding and Polishing 13,090 machine hours Product modification 1 490 engineering h Providing power 3,090 direct labor hours System calibration 950 batches Job 3175 Job 4286 Number of units 160 units 2,090 units Machine hours 450 MH 4, 509 MH Engineering hours 34 hours 28 EnE hours Batches 25 batches 75 batches Direct labor hours 460 DLH 4, 140 DLH 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 Overhead Cost Activity Drivers Activity Rate Activity driver incurred Overhead Activity driver Overhead assigned incurred assigned Grinding & Polishing Machine hours Product modification Engineering hrs. Providing powe Direct labor hrs System calibration batches

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago