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Assume that manufacturing overhead for Glassman Company

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Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the;following activities and costs;Setup (1,000 setup hours)..................... $144,000;Production scheduling (400 batches)............. 60,000;Production engineering (60 change orders)........ 120,000;Supervision (2,000 direct labor hours)............ 56,000;Machine maintenance (12,000 machine hours)..... 84,000;Total activity costs......................... $464,000;The following additional data were provided for Job 845;Direct materials costs.......................... $7,000;Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours)................ $1,000;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;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;Milling Department manufacturing overhead...............................$344,000;Finishing Department manufacturing overhead.............................$120,000;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 hour

 

Paper#79475 | Written in 18-Jul-2015

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