Question

Assume that manufacturing overhead for Windsor Company consisted of the following activities and costs:

Setup (1,000 setup hours)	$ 92,000
Production scheduling (300 batches)	24,000
Production engineering (70 change orders)	70,000
Supervision (2,200 direct labor hours)	66,000
Machine maintenance (13,000 machine hours)	78,000
Total activity costs	$ 330,000

The following additional data were provided for Job 845:

Direct material costs	$ 6,000
Direct labor cost (5 Milling direct labor hours; 25 Finishing direct labor hours)	$ 1,000
Setup hours	5 hours
Production scheduling	1 batch
Machine hours used (15 Milling machine hours; 5 Finishing machine hours)	20 hours
Production engineering	2 change orders

(a) Calculate the cost per unit of activity driver for each activity cost category.

Setup	$Answer
Production scheduling	$Answer
Production engineering	$Answer
Supervision	$Answer
Machine operating	$Answer

(b) Calculate the cost of Job 845 using ABC to assign the overhead costs.
$Answer

(c) Calculate the cost of Job 845 using the plantwide overhead rate based on machine hours of $30 per hour. (Round your answer to the nearest dollar.)
$Answer

(d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department ($26 per hour) and a direct hour overhead rate for the Finishing Department ($96 per hour). (Round your answer to the nearest dollar.)  
$Answer

Answer 1

The answer has been presented in the supporting sheet . All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.