Reference no: EM132713721

Activity-Based Costing Overhead Rates.

Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and costs:

Setup (1,000 setup hours)             $92,000

Production scheduling (300 batches) $24,000

Production engineering (70 change orders) $70,000

Supervision (2,200 direct labor hours) $66,000

Machine maintenance (13,000 machine hours) $78,000

Total activity costs $330,000

The following additional data were provided for Job 845:

Direct materials costs    $6,000

Direct labor cost (5 Milling direct labor hours, 25 Finishing direct labor hours) $1,000

Setup hours 5 hours

Production scheduling 1 batch

Machine hours used (15 Milling machine hours; 5 Finishing machine hours) 20 hours

Production engineering 2 change orders

Problem 1: Calculate the cost of Job 845 using the Plantwide Overhead Rate based on machine hours.