Craftmore 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 |
|
$ |
310,000 |
|
|
|
|
|
|
|
|
|
Polishing |
|
|
|
|
|
$ |
145,000 |
|
|
|
|
|
Product modification |
|
|
550,000 |
|
|
|
|
|
|
|
|
|
Providing power |
|
|
|
|
|
|
|
|
|
$ |
260,000 |
|
System calibration |
|
|
560,000 |
|
|
|
|
|
|
|
|
|
|
Additional information on the drivers for its production activities follows.
|
|
|
Grinding |
17,000 |
machine hours |
Polishing |
17,000 |
machine hours |
Product modification |
1,500 |
engineering hours |
Providing power |
15,000 |
direct labor hours |
System calibration |
200 |
batches |
|
Problem C-1A Part 3
|
Job 3175 |
Job 4286 |
Number of units |
150 |
units |
1,875 |
units |
Machine hours |
350 |
MH |
3,500 |
MH |
Engineering hours |
30 |
eng. hours |
30 |
eng. hours |
Batches |
10 |
batches |
30 |
batches |
Direct labor hours |
520 |
DLH |
4,680 |
DLH |
![Problem C-1A Applying activity-based costing LO P1, P2, A1<br>[The following information applies to the questions displayed below.]<br>Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs<br>were taken from its company records.<br>Production Activity<br>Grinding<br>Polishing<br>Indirect Labor<br>Indirect Materials<br>Other Overhead<br>$310,000<br>$145,000<br>Product modification<br>Providing power<br>System calibration<br>550,000<br>$260,000<br>560,000<br>Additional information on the drivers for its production activities follows.<br>Grinding<br>Polishing<br>Product modification<br>17,000 machine hours<br>17,000 machine hours<br>1,500 engineering hours<br>15,000 direct labor hours<br>Providing power<br>System calibration<br>200 batches<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_c9hfzz0-vuvsnm5n.png)
Extracted text: Problem C-1A Applying activity-based costing LO P1, P2, A1 [The following information applies to the questions displayed below.] 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 Indirect Labor Indirect Materials Other Overhead $310,000 $145,000 Product modification Providing power System calibration 550,000 $260,000 560,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification 17,000 machine hours 17,000 machine hours 1,500 engineering hours 15,000 direct labor hours Providing power System calibration 200 batches
Extracted text: Problem C-1A Part 3 Job 3175 Job 4286 1,875 units 3,500 MH 30 eng. hours 30 batches Number of units 150 units Machine hours 350 MH Engineering hours Batches 30 eng. hours 10 batches Direct labor hours 520 DLH 4,680 DLH 3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.) Job 3175 Job 4286 Total overhead cost Number of units in job Average overhead cost per unit