Problem C-1A Applying activity-based costing LO P1, P2, A1 Skip to question [The following information applies to the questions displayed below.] Craftmore Machining produces machine tools for the...

Problem C-1A Applying activity-based costing LO P1, P2, A1

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[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	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 5

Extracted text: ! Required information 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 Product modification Providing power System calibration Indirect Labor Indirect Materials Other Overhead $310,000 $145,000 550,000 $260,000 560,000 Additional information on the drivers for its production activities follows. Grinding Polishing 17,000 machine hours 17,000 machine hours 1,500 engineering hours 15,000 direct labor hours Product modification Providing power System calibration 200 batches


Extracted text: 5a. Compare the overhead costs per unit computed in requirements 3 and 4 for each job. (Round your answers to 2 decimal places.) Average Overhead Cost Job 3175 Job 4286 Using ABC Using plantwide rate