Craftmore Machining produces machine tools for the construction industry. The fo

Question

Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

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.)

Determine overhead costs to assign to the following jobs using ABC. (Use the rates calculated in Part 2 and then round your intermediate calculations and your final answers to the nearest whole number. Omit the "$" sign in your response.)

What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Use the total job cost in Part 3 and then round your final answers to 2 decimal places. Omit the "$" sign in your response.)

Assume 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 cost per DLH to 2 decimal places, intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the "$" sign in your response.)

  Production Activity Indirect Labor Indirect Materials Other Overhead   Grinding $ 350,000   Polishing $ 145,000   Product modification 500,000   Providing power $ 225,000   System calibration 460,000

Explanation / Answer

Hi,

Please find the answers as follows:

Part 1:

Part 2:

Part 3:

Part 4:

Part 5:

Thanks.

Grinding Unit Level Polishing Unit Level Product Modification Product Level Providing Power Facility Level System Caliberation Batch Level

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