Question

Question 11

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. Indirect Materials Other Overhead Indirect Labor $340,000 $ 170,000 Production Activity Grinding Polishing Product modification Providing power System calibration 400,000 $ 210,000 460,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 19,000 machine hours 19,000 machine hours 2,100 engineering hours 20,000 direct labor hours 400 batches Job 4286 1,625 units 4,000 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 130 units 400 MH 30 eng. hours 20 batches 430 DLH 20 eng. hours 60 batches 3,870 DLH

Answer 1

Solution: $ 79.00 Per DLH Estimated overhead Estimated labor hour $ 15,80,000.00 20,000 DL hours Product Job 3175 Job 4286 Plantwide OH rate 430 $ 79.00 3870 $ 79.00 Total overhead cost $ 33,970.00 $ 3,05,730.00 Units produced OH cost per unit 130 $ 261.31 1625 $ 188.14 * Kindly Comment down for any clarifications/ queries and please upvote.