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 $400,000 Indirect Materials Other Overhead Production Activity Grinding Polishing Product modification Providing power System calibration $ 210,000 400,000 $ 205,000 510,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 10,000 machine hours 1,500 engineering hours 19,000 direct labor hours 550 batches Number of units Machine hours Job 3175 160 units 300 MH eng. 27 hours 20 batches 480 DLH Job 4286 2,000 units 3,000 MH eng. 36 hours 60 batches 4,320 DLH Engineering hours Batches Direct labor hours Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration ! 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 Materials Other Overhead Indirect Labor $400,000 Production Activity Grinding Polishing Product modification Providing power System calibration $ 210,000 400,000 $ 205,000 510,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 10,000 machine hours 1,500 engineering hours 19,000 direct labor hours 550 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 160 units 300 MH eng. 27 hours 20 batches 480 DLH Job 4286 2,000 units 3,000 MH eng. 36 hours 60 batches 4,320 DLH 0 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.) Collapse Job 3175 Activity Overhead Cost Activity Drivers Activity Rate Activity driver incurred Overhead assigned Activit inc Grinding & Polishing Machine hours Product modification Engineering hrs. Providing power Direct labor hrs. System calibration batches Job 4286 Activity driver Overhead incurred assigned
