Craftmore Machining reports the following budgeted overhead cost and related data for this year. Budgeted Cost Activity Assembly Budgeted Activity Usage 13,000 Product design Activity Cost Driver $ 390,000 Direct labor hours (DLH) 60,000 Engineering hours (EH) 20,000 Machine hours (MH) 50,000 Setups Electricity 1,000 10,000 400 $ 520,000 Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hou 2. Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the si plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Job 31 Job 42 Activity Usage Job 31 200 26 50 4 Complete this question by entering your answers in the tabs below. Required 3 Job 42 Required 4 480 32 60 6 Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Plantwide Overhead Rate Direct Labor Hours per Unit Overhead Allocated
Craftmore Machining reports the following budgeted overhead cost and related data for this year. Budgeted Cost Activity Assembly Budgeted Activity Usage 13,000 Product design Activity Cost Driver $ 390,000 Direct labor hours (DLH) 60,000 Engineering hours (EH) 20,000 Machine hours (MH) 50,000 Setups Electricity 1,000 10,000 400 $ 520,000 Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hou 2. Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the si plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Job 31 Job 42 Activity Usage Job 31 200 26 50 4 Complete this question by entering your answers in the tabs below. Required 3 Job 42 Required 4 480 32 60 6 Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Plantwide Overhead Rate Direct Labor Hours per Unit Overhead Allocated
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Craftmore Machining reports the following budgeted overhead cost and related data for this year.
Activity
Budgeted Cost
Activity Cost Driver
Assembly
Product design
$ 390,000 Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
60,000
20,000
Budgeted Activity Usage
13,000
1,000
10,000
400
Electricity
50,000
Setups
$ 520,000
Setup
Total
Required:
1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
2. Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the single
plantwide overhead rate from part 1.
3. Compute an activity rate for each activity using activity-based costing.
4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing.
Activity Cost Driver
Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
Setups
Required 1
Complete this question by entering your answers in the tabs below.
Required 2
Job 31
Job 42
Activity Usage
Job 31
200
26
50
4
Required 3
Job 42
480
32
60
6
Required 4
Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the single
plantwide overhead rate from part 1.
Plantwide Overhead Rate
Direct Labor Hours per Unit
Overhead
Allocated
Transcribed Image Text:Craftmore Machining reports the following budgeted overhead cost and related data for this year.
Budgeted Cost
Activity Cost Driver
Activity
Assembly
Product design
$ 390,000 Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
60,000
20,000
Budgeted Activity Usage
13,000
1,000
10,000
400
Electricity
50,000
Setups
$ 520,000
Setup
Total
Required:
1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
2. Job 31 used 200 direct labor hours and Job 42 used 480 direct labor hours. Allocate overhead cost to each job using the single
plantwide overhead rate from part 1.
3. Compute an activity rate for each activity using activity-based costing.
4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing.
Activity Cost Driver
Direct labor hours (DLH)
Engineering hours (EH)
Machine hours (MH)
Setups
Required 1 Required 2
Activity Usage
Job 31
200
26
50
4
Numerator
Denominator
Job 42
Complete this question by entering your answers in the tabs below.
480
32
60
6
Required 3 Required 4
Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.
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