I could use some help answering this with the attached spreadsheet: Glassman Company acculated the following data for 2019: Milling Department manufacturing overhead $484,000 Finishing Department...


I could use some help answering this with the attached spreadsheet:



Glassman Company acculated the following data for 2019:





































Milling Department manufacturing overhead$484,000
Finishing Department manufacturing overhead$260,000
Machine hours used
      Milling Department10,000
     Finishing Deparment2000
Labor hours used
      Milling Department1000
     Finishing Department1000


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






























Setup  (1000 setup hours)$288,000
Production scheduling (400 batches)$60,000
Production engineering (60 change orders)$180,000
Supervision (2000 direct labor hours)$56,000
Machine maintenance (12,000 machine hours)$168,000
     Total activity costs$752,000

The following additional data were provided for Job 845:





























Direct materials costs$7000
Direct labor cost (5 milling direct labor hours; 35 finishing direct labor house)$1000
Setup hours5 hours
Production scheduling1 batch
Machine hours used (25 milling machine hours; 5 finishing machine hours)30 hours
Product engineering3 change orders

Problems:


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


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


c) Calculate the cost of Job 845 using the company-wide overhead rate based on machine hours calculated.


d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department.


|Activity cost calculations:<br>Set up cost<br>Production scheduling cost<br>Production engineering cost<br>|Supervision cost<br>Machine operating cost<br>include the formula here<br>a<br>Direct materials<br>Direct labor<br>Manufacturing overhead cost<br>b<br>Total Job 845 cost<br>Total Job 845 cost<br>Total Job 845 cost<br>

Extracted text: |Activity cost calculations: Set up cost Production scheduling cost Production engineering cost |Supervision cost Machine operating cost include the formula here a Direct materials Direct labor Manufacturing overhead cost b Total Job 845 cost Total Job 845 cost Total Job 845 cost
Jun 02, 2022
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