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 Production Activity Grinding Polishing Product moclification Providing power System colibration Indirect Labor Indirect Materials Other Overhead $350,000 600,000 440,000 $ 170,000 $240,000 Additional information on the drivers for its production activities follows. Grinding 16,000 machine hours 16,000 machine hours Product modification 900 engineering hours Providing power System colibration 18,000 direct labor hours 300 batches

Explanation / Answer

1.

2.

3.

4.

5.

Activity Overhead Cost Activity Drivers Activity Rate Grinding and Polishing $520,000 16000 Machine hours $32.50 per machine hour Product modification $600,000 1900 Engineering hrs. $315.79 per engineering hour Providing Power $240,000 18000 Direct labor hrs. $13.33 per direct labor hour System Calibration $440,000 300 batches $1,466.67 per batch

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---