Craftmore 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   $ 310,000                   Polishing           $ 145,000           Product modification     550,000                   Providing power                   $ 260,000   System calibration     560,000                     Additional information on the drivers for its production activities follows.           Grinding 17,000 machine hours Polishing 17,000 machine hours Product modification 1,500 engineering hours Providing power 15,000 direct labor hours System calibration 200 batches     Problem C-1A Part 3   Job 3175 Job 4286 Number of units 150 units 1,875 units Machine hours 350 MH 3,500 MH Engineering hours 30 eng. hours 30 eng. hours Batches 10 batches 30 batches Direct labor hours 520 DLH 4,680 DLH

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Chapter19: Job Order Costing
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Craftmore 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   $ 310,000                  
Polishing           $ 145,000          
Product modification     550,000                  
Providing power                   $ 260,000  
System calibration     560,000                  
 


Additional information on the drivers for its production activities follows.
 


 

     
Grinding 17,000 machine hours
Polishing 17,000 machine hours
Product modification 1,500 engineering hours
Providing power 15,000 direct labor hours
System calibration 200 batches
 

 

Problem C-1A Part 3

  Job 3175 Job 4286
Number of units 150 units 1,875 units
Machine hours 350 MH 3,500 MH
Engineering hours 30 eng. hours 30 eng. hours
Batches 10 batches 30 batches
Direct labor hours 520 DLH 4,680 DLH
Problem C-1A Applying activity-based costing LO P1, P2, A1
[The following information applies to the questions displayed below.]
Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs
were taken from its company records.
Production Activity
Grinding
Polishing
Indirect Labor
Indirect Materials
Other Overhead
$310,000
$145,000
Product modification
Providing power
System calibration
550,000
$260,000
560,000
Additional information on the drivers for its production activities follows.
Grinding
Polishing
Product modification
17,000 machine hours
17,000 machine hours
1,500 engineering hours
15,000 direct labor hours
Providing power
System calibration
200 batches
Transcribed Image Text:Problem C-1A Applying activity-based costing LO P1, P2, A1 [The following information applies to the questions displayed below.] Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Grinding Polishing Indirect Labor Indirect Materials Other Overhead $310,000 $145,000 Product modification Providing power System calibration 550,000 $260,000 560,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification 17,000 machine hours 17,000 machine hours 1,500 engineering hours 15,000 direct labor hours Providing power System calibration 200 batches
Problem C-1A Part 3
Job 3175
Job 4286
1,875 units
3,500 MH
30 eng. hours
30 batches
Number of units
150 units
Machine hours
350 MH
Engineering hours
Batches
30 eng. hours
10 batches
Direct labor hours
520 DLH
4,680 DLH
3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost
per unit to 2 decimal places.)
Job 3175
Job 4286
Total overhead cost
Number of units in job
Average overhead cost per unit
Transcribed Image Text:Problem C-1A Part 3 Job 3175 Job 4286 1,875 units 3,500 MH 30 eng. hours 30 batches Number of units 150 units Machine hours 350 MH Engineering hours Batches 30 eng. hours 10 batches Direct labor hours 520 DLH 4,680 DLH 3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.) Job 3175 Job 4286 Total overhead cost Number of units in job Average overhead cost per unit
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