Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production ActivityIndirect LaborIndirect MaterialsOther OverheadGrinding $310,000 Polishing $145,000 Product modification 550,000 Providing power $260,000 System calibration 560,000 Additional information on the drivers for its production activities follows. Grinding17,000machine hoursPolishing17,000machine hoursProduct modification1,500engineering hoursProviding power15,000direct labor hoursSystem calibration200batches Problem C-1A Part 3 Job 3175Job 4286Number of units150units1,875unitsMachine hours350MH3,500MHEngineering hours30eng. hours30eng. hoursBatches10batches30batchesDirect labor hours520DLH4,680DLH **Problem C-1A Applying activity-based costing LO P1, P2, A1***[The following information applies to the questions displayed below.]*Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.| Production Activity | Indirect Labor | Indirect Materials | Other Overhead ||-------------------------|----------------|--------------------|----------------|| Grinding | $310,000 | | || Polishing | | $145,000 | || Product modification | $550,000 | | $260,000 || Providing power | $560,000 | | || System calibration | | | |Additional information on the drivers for its production activities follows.| Production Activity | Driver ||-------------------------|---------------------------------------|| Grinding | 17,000 machine hours || Polishing | 17,000 machine hours || Product modification | 1,500 engineering hours || Providing power | 15,000 direct labor hours || System calibration | 200 batches | **Problem C-1A Part 3**| | Job 3175 | Job 4286 ||-----------------------|-----------|------------|| Number of units | 150 units | 1,875 units|| Machine hours | 350 MH | 3,500 MH || Engineering hours | 30 eng. hours | 30 eng. hours || Batches | 10 batches | 30 batches || Direct labor hours | 520 DLH | 4,680 DLH |**3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.)**| | Job 3175 | Job 4286 ||-----------------------|-----------|------------|| Total overhead cost | | || Number of units in job| | || Average overhead cost per unit | | |**Explanation:**The table contains data for two jobs, Job 3175 and Job 4286, listing the number of units, machine hours (MH), engineering hours, batches, and direct labor hours (DLH) for each job.Below the table, users are prompted to calculate the overhead cost per unit for both jobs. Rounding is required to two decimal places. An additional table is provided for filling in the total overhead cost, number of units in the job, and the average overhead cost per unit for each job.

Name: Craftmore Machining produces machine tools for the construction indust
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production ActivityIndirect LaborIndirect MaterialsOther OverheadGrinding $310,000 Polis

Activity based Costing involves classifying the total overhead cost into various cost pools. Each…

Answered: Craftmore Machining produces machine…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem C-1A Part 3

	Job 3175	Job 4286
Number of units	150	units	1,875	units
Machine hours	350	MH	3,500	MH
Engineering hours	30	eng. hours	30	eng. hours
Batches	10	batches	30	batches
Direct labor hours	520	DLH	4,680	DLH

**Problem C-1A Applying activity-based costing LO P1, P2, A1**

*[The following information applies to the questions displayed below.]*

Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

| Production Activity | Indirect Labor | Indirect Materials | Other Overhead |
|-------------------------|----------------|--------------------|----------------|
| Grinding | $310,000 | | |
| Polishing | | $145,000 | |
| Product modification | $550,000 | | $260,000 |
| Providing power | $560,000 | | |
| System calibration | | | |

Additional information on the drivers for its production activities follows.

| Production Activity | Driver |
|-------------------------|---------------------------------------|
| Grinding | 17,000 machine hours |
| Polishing | 17,000 machine hours |
| Product modification | 1,500 engineering hours |
| Providing power | 15,000 direct labor hours |
| System calibration | 200 batches |

**Problem C-1A Part 3**

| | Job 3175 | Job 4286 |
|-----------------------|-----------|------------|
| Number of units | 150 units | 1,875 units|
| Machine hours | 350 MH | 3,500 MH |
| Engineering hours | 30 eng. hours | 30 eng. hours |
| Batches | 10 batches | 30 batches |
| Direct labor hours | 520 DLH | 4,680 DLH |

**3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.)**

| | Job 3175 | Job 4286 |
|-----------------------|-----------|------------|
| Total overhead cost | | |
| Number of units in job| | |
| Average overhead cost per unit | | |

**Explanation:**

The table contains data for two jobs, Job 3175 and Job 4286, listing the number of units, machine hours (MH), engineering hours, batches, and direct labor hours (DLH) for each job.

Below the table, users are prompted to calculate the overhead cost per unit for both jobs. Rounding is required to two decimal places. An additional table is provided for filling in the total overhead cost, number of units in the job, and the average overhead cost per unit for each job.

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Production Activity	Indirect Labor	Indirect Materials	Other Overhead
Grinding		$	310,000
Polishing				$	145,000
Product modification			550,000
Providing power						$	260,000
System calibration			560,000


Grinding	17,000	machine hours
Polishing	17,000	machine hours
Product modification	1,500	engineering hours
Providing power	15,000	direct labor hours
System calibration	200	batches