Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to...

Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3

[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.

Production Activity	Indirect Labor		Indirect Materials		Other Overhead
Grinding	$	380,000
Polishing			$	145,000
Product modification		450,000
Providing power					$	205,000
System calibration		470,000

Additional information on the drivers for its production activities follows.


Grinding	19,000	machine hours
Polishing	19,000	machine hours
Product modification	1,600	engineering hours
Providing power	20,000	direct labor hours
System calibration	800	batches

	Job 3175		Job 4286
Number of units	190	units	2,375	units
Machine hours	350	MH	3,500	MH
Engineering hours	33	eng. hours	24	eng. hours
Batches	5	batches	15	batches
Direct labor hours	510	DLH	4,590	DLH

Problem 17-3A Parts 2, 3 & 4

2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool. Determine overhead costs to assign to the following 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.)

Overhead Cost----Activity Drivers-----Activity Rate---Activity Driver incurred----------Overhead assigned------Activity Driver incurred------Overhead Assigned

Grinding and Polishing---------------------------/--------------/Machine Hours-------------/--------------------------------/-------------------------------------/------------------------------------/------------------------------------l

Product Modification-----------------------------/---------------/Engineering Hours--------/--------------------------------/-------------------------------------/------------------------------------/-------------------------------------l

Providing Power----------------------------------/----------------/Direct Labor Hours--------/-------------------------------/--------------------------------------/------------------------------------/-------------------------------------l

System Calibration-----------------------------/---------------/batches-------------------------/-------------------------------/--------------------------------------/-------------------------------------/------------------------------------l

Expert Solution

ekkarill92 answered 11 months ago

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Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to...

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