Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

see the attachmeant Crafton Manufacturing produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production

see the attachmeantimage text in transcribed

Crafton Manufacturing produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Grinding Polishing Product modification Providing power System calibration Indirect Labor $ 320,000 Indirect Materials Other Overhead $ 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 engineering 1,500 hours direct labor 17,000 hours 400 batches 4. value: 5 points Compute the activity overhead rates using ABC. Form cost pools as appropriate. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Grinding & Polishing Product modification Providing power System calibration $ per MH $ per Eng. Hr. $ per DLH $ per batch Check My WorkeBook Links (6)References 5. value: 7 points Determine overhead costs to assign to the following jobs using ABC. (Use the rates calculated in Requirement 2 and then round your final answer to the nearest whole number. Omit the "$" sign in your response.) Job 3175 Number of units Machine hours Engineerin g hours Batches Direct labor hours Job 4286 200 units 2,500 units 550 MH 5,500 MH 26 eng hours 32 eng. hours 30 batches 90 batches 500 DLH 4,375 DLH Job 3175 Job 4286 Grinding & Polishing Product modification Providing power System calibration Total cost of job $ $ $ $ Check My WorkeBook Links (6)References 6. value: 5 points What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Job 3175 Average overhead cost per unit $ Job 4286 $ Check My WorkeBook Links (6)References 7. value: 5 points If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Job 3175 Average overhead cost per unit Job 4286 $ $

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

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions