Compute the activity overhead rates using abc form cost

Reference no: EM13583034

Production Activity	Indirect Labor			Indirect Materials			Other Overhead
Grinding		$	380,000
Polishing					$	115,000
Product modification			550,000
Providing power								$	235,000
System calibration			560,000

Additional information on the drivers for its production activities follows.


Grinding	15,000	machine hours
Polishing	15,000	machine hours
Product modification	1,300	engineering hours
Providing power	14,000	direct labor hours
System calibration	300	batches

	Job 3175		Job 4286
Number of units	180	units	2,250	units
Machine hours	350	MH	3,500	MH
Engineering hours	27	eng.hours	22	eng.hours
Batches	10	batches	30	batches
Direct labor hours	500	DLH	4,500	DLH

Required:
1.	Classify each activity as unit level, batch level, product level, or facility level.

2.Required:

2, 3 & 4.

Compute the activity overhead rates using ABC. Form cost pools as appropriate. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your activity rate to 2 decimal places.)

Required:

If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)

Reference no: EM13583034

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