Question

Check Required information (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 Grinding Polishing Product modification Providing power Systen calibration Indirect Labor Indirect Materiala Other Overhead 6360, 000 $185,000 600, 000 $220, 000 540,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power Syatem calibration 15,000 machine hours 15,000 machine hours 1,700 engineering hours 17,000 direct labor hours 1,150 batches Job 3175 190 units 300 MH Job 4286 Nunber of unita Machine hours 2.375 unita 3,000 MH eng. 27 hours 10 batches eng. 34 hours Engineering hours Batchea Direct labor hours 30 batches 4,320 DLH 480 DLH

Answer 1

Answer)

	Job 3175	Job 4286
Total Overhead cost per unit	164.93	80.42

Calculation Given Below,

					Job 3175		Job 4286
Activity	Overhead Cost	Activity Driver		Activity Rate(overhead cost / activity rate) (X)	Activity Driver incurred (Y)	Overhead Assigned(X*Y)	Activity Driver incurred (Z)	Overhead Assigned (X*Z)
Grinding	360,000	15,000	Machine hours	24.00	300	7,200.00	3000	72,000.00
Polishing	185,000	15,000	Machine hours	12.33	300	3,700.00	3000	37,000.00
Product Modification	600,000	1,700	Engeering hours	352.94	27	9,529.41	34	12,000.00
Providing Power	220,000	17,000	Direct labour hours	12.94	480	6,211.76	4320	55,905.88
System calibration	540,000	1,150	batches	469.57	10	4,695.65	30	14,086.96
Total Overhead cost per unit						31,336.83		190,992.84
No. of unit Job wise						190		2375
Total Overhead cost per unit						164.93		80.42