Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly $ 555,750 Direct labor hours (DLH) 13,000 Product design 85,500 Engineering hours (EH) 1,500 Electricity 28,500 Machine hours (MH) 11,400 Setup 71,250 Setups 570 Total $ 741,000 Required: Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Compute an activity rate for each activity using activity-based costing. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Activity Usage Job 31 Job 42 Direct labor hours (DLH) 320 680 Engineering hours (EH) 43 49 Machine hours (MH) 56 58 Setups6 8 Question #1 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly $ 555,750 Direct labor hours (DLH) 13,000 Product design 85,500 Engineering hours (EH) 1,500 Electricity 28,500 Machine hours (MH) 11,400 Setup 71,250 Setups 570 Total $ 741,000 Required: Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Compute an activity rate for each activity using activity-based costing. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Activity Usage Job 31 Job 42 Direct labor hours (DLH) 320 680 Engineering hours (EH) 43 49 Machine hours (MH) 56 58 Setups6 8 Question #1 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Craftmore Machining reports the following budgeted overhead cost and related data for this year.
Activity Budgeted Cost Activity
Cost Driver Budgeted Activity
Usage
Assembly $ 555,750 Direct labor hours (DLH) 13,000
Product design 85,500
Engineering hours (EH) 1,500
Electricity 28,500 Machine hours
(MH) 11,400
Setup 71,250 Setups 570
Total $ 741,000
Required:
Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Compute an activity rate for each activity using activity-based costing.
Allocate overhead costs to Job 31 and Job 42 using activity-based costing.
Activity Cost Driver Activity Usage
Job 31 Job 42
Direct labor hours (DLH) 320
680
Engineering hours (EH) 43 49
Machine hours (MH) 56 58
Setups6 8
Question #1
Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
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