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##### Calculating Activity-Based Costing Overhead Rates

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Question;Calculating Activity-Based Costing Overhead;Rates;Assume that manufacturing overhead for;Glassman Company in the previous exercise consisted of the following activities;and costs;Setup(1,000setup;hours)????????????????\$146,000;Production Scheduling (400batches)??????????..60,000;Production Engineering (60 change;orders)???????90,000;Supervision (2,000 direct labor;hours)??????????.56,000;Machine Maintenance (12,000 machine;hours)????..96,000;Total Activity;Costs????????????????????\$460,000;The following additional data were provided;for Job 845;Direct Materials;Costs??????????????????????????????????\$8,000;Direct labor cost (5 Milling direct labor;hours, 35 Finishing direct labor hours)??..1000;Setup;hours????????????????????????????????????????.5 hours;Production;Scheduling?????????????????????????????????.. 1 batch;Machine hours used (25 Milling machine;hours;5 finishing machine;hours)????????????????????????????????30 hours;Production;engineering????????????????????????????????3 change orders;Required;a.;Calculate the cost per unit of;activity driver for each activity cost category.;b.;Calculate the cost of Job 845;using ABC to assign the overhead costs.;c.;Calculate the cost of Job 845;using the plantwide overhead rate based on machine hours calculated in the;previous exercise.;d.;Calculate the cost of Job 845;using a machine hour departmental overhead rate for the Milling Department and;a direct labor hour overhead rate for the Finishing Department;Data for;2014 to solve (d);Milling Department manufacturing;overhead??????????????????? \$362,000;Finishing Department manufacturing;overhead??????????????????..130,000;Machine hours used;Milling Department????????????????????????????????10,000;hours;Finishing;Department???????????????????????????????.2,000 hours;Labor hours used;Milling;Department?????????????????????????????????.1,000 hours;Finishing Department????????????????????????????????.1,000 hours

Paper#37776 | Written in 18-Jul-2015

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