Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...

Calculating Activity-Based Costing Overhead Rates

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

Setup (1,000 setup hours)	$150,000
Production scheduling (400 batches)	80,000
Production engineering (60 change orders)	60,000
Supervision (2,000 direct labor hours)	66,000
Machine maintenance (12,000 machine hours)	48,000
Total activity costs	$404,000

The following additional data were provided for Job 845:

Direct materials costs	$7,000
Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours)	$1,000
Setup hours	5 hours
Production scheduling	1 batch
Machine hours used (25 Milling machine hours;5 Finishing machine hours)	30 hours
Production engineering	3 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 maintenance
$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. (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 ($27 per hour) and a direct hour overhead rate for the Finishing Department ($97 per hour). (Round your answer to the nearest dollar.)
$Answer

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ekkarill92 answered 1 year ago

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