Question

11 Part 3 of 3 3 points 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 Indirect Labor Indirect Materials Other Overhead Grinding $370,000 Polishing $180,000 Product modification 550,000 Providing power $230,000 System calibration 550,000 04:33:02 Skipped Additional information on the drivers for its production pactivities follows. eBook Grinding Polishing Product modification Providing power Systen calibration 11,000 machine hours 11,000 machine hours 1,600 engineering hours 20,000 direct labor hours 500 batches Print Job 3175 160 units 300 MH Number of units Machine hours Engineering hours Batches Direct labor hours 34 eng. Job 4286 2,000 units 3,000 MH 26 eng. hours 90 batches 3,690 DLH hours 30 batches 410 DLH Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of < Prev 11 of 14 ME Gra Hill Next >

Answer 1

Overhead costs $1880000 $94 per direct labor hour Direct labor hours 20000 Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 300 $94 $28200 160 $176.25 Job 4286 3690 $94 $346860 2000 $173.43

Total Overhead cost = $550000 + $550000 + $230000 + $550000 = $1880000