w 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 $360,000 Polishing $190,000 Product modification 400,000 Providing power $240,000 System calibration 460,000 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 18,000 direct labor hours 1,350 batches Job 3175 180 units 300 MH Number of units Machine hours Engineering hours Batches Direct labor hour 28 eng. Job 4286 2,250 units 3,000 MH 24 ong. hours 90 batches 4,680 DLH hours 30 batchen 520 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration (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 $360,000 $190,000 Production activity Grinding Polishing Product modification Providing power System calibration 400,000 $240,000 460,000 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 18,000 direct labor hours 1,350 batohes Job 3175 180 units 300 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 4286 2,250 units 3,000 MH 24 eng. Hours 90 batches 4.680 DLH 28 eng. hours 30 batches 520 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 Overhead Cost Activity Rate Activity driver incurred Activity Grinding & Polishing Product modification Activity Drivers Machine hours Engineering hra Direct labor hrs Providing power Systom calibration batches Job 3175 Activity Rate Activity driver incurred Overhead assigned Job 4286 Activity driver Overhead Incurred assigned 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 Material Other Overhead Grinding $360,000 Polishing $190,000 Product modification 400,000 Providing power $240,000 System calibration 460,000 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 18,000 direct labor hours 1,350 batches Job 3175 180 units 300 MH Job 4286 2,250 units 3,000 MH Number of units Machine hours Engineering hours Batches Direct labor hours 28 ng. 24 eng. hours 30 batches 520 DLR hours 90 batches 4.680 DLH 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
