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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#38233 | Written in 18-Jul-2015

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