Question

! Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [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. Indirect Labor $370,000 Indirect Materials other overhead $220,000 Production Activity Grinding Polishing Product modification Providing power System calibration 550,000 $245,000 530,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 13,000 machine hours 13,000 machine hours 1,900 engineering hours 20,000 direct labor hours 1,000 batches Job 3175 220 units Number of units Machine hours 400 MH 28 eng. hours 15 batches 480 DLH Engineering hours Batches Direct labor hours Job 4286 2,750 units 4,000 MH 26 eng. hours 45 batches 4,320 DLH Problem 17-3A Part 1 Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Part-1 Overhead Cost A $ $ Grinding and Polishing Product Modification Providing Power System Calibration 590,000 550,000 245,000 530,000 Activity Drivers B 13,000 Machine Hours 1,900 Engineer Hours 20,000 Direct Labor Hours 1,000 Batches Activity Rate A/B $ $ $ $ 45.38 per Machine Hour 289.47 Per Engineer Hour 12.25 Per DLH 530.00 per Batch $ $ Part-2,3 and 4 Job 3175 Activity Driver $ $ Grinding and Polishing Product Modification Providing Power System Calibration Total Activity rate 45.38 per Machine Hour 289.47 Per Engineer Hour 12.25 Per DLH 530.00 per Batch Overhead Assigned 4,000 $ 181,520 28 $ 8,105 480 $ 5,880 15 $ 7,950 $ 203,455 $ $ Part -2,3 and 4 Job 4286 Activity Driver Grinding and Polishing Product Modification Providing Power System Calibration Total $ $ $ Activity rate 45.38 per Machine Hour 289.47 Per Engineer Hour 12.25 Per DLH 530.00 per Batch Overhead Assigned 4,000 $ 181,520 26 $ 7,526 4,320 S 52,920 45 $ 23,850 Ś 265,816 $ Part-2,3 and 4 Job 3175 $ Total Overhead Cost No of Units Average ovh cost per unit Job 4286 203,455 $ 220 924.80 $ 265,816 2,750 96.66 $ Part - 5 Direct Labor Hours Overhead Cost a b 20,000 1,915,000 $ Per Direct Labor Hours b/a $ 95.75 Product Units Produced d DL Hours Plantwise OH Rate Total Ovh Cost a b c=a*b 480 $ 95.75 $ 45,960 4,320 S 95.75 S 413,640 OH Cost per unit c/d 220 $ 208.91 2,750 $ 150.41 Job 3175 Job 4286