Question

Required Information Problem 4-3A Applylng ectlvlty-based costing LO P1, P3, A1, A2, C3 The following Information applies to the questions displayed below Craft Pro Machining produces machlne tools for the construction Industry. The following detalls about overhead costs were taken from Its company records. Production Activity Grinding Polishing Product modification Providing power Systen calibration Indirect Labor Indirect Materials Other Overhead $358,60 55e.880 568,690 $115,880 $225,68e Additional Information on the drivers for Its production activitles follows. Grinding Polishing Product modification Providing power Systen calibration 18,899 machine hours 18,899 machine hours 2,269 engineering hours 15,899 direct labor hours 289 batches Job 3175 199 units 500 MH Job 4286 2,375 units 5,888 MH Number of units Machine hours eng Engineering hour:s Batches Direct labor hours eng hours 45 batches 26 28 hours 15 batches 450 DLH 4,858 DLH Problem 4-3A Part 1 equired . Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration

Answer 1

	CLASSIFY ACTIVITY
SR. NO.	PARTICULARS	ACTIVITIES	REMARKS
1	GRINDING	UNIT LEVEL	occur every time a service is performed or a product is made.
2	POLISHING	UNIT LEVEL	occur every time a service is performed or a product is made.
3	PRODUCT MODIFICATION	PRODUCT LEVEL	those activities that support an entire product line but not necessarily each individual unit
4	PROVIDING POWER	FACILITY LEVEL	necessary for development and production to take place
5	SYSTEM CALIBRATION	BATCH LEVEL	costs incurred every time a group (batch) of units is produced or a series of steps is performed