|Activity cost calculations: Set up cost Production scheduling cost Production engineering cost |Supervision cost Machine operating cost include the formula here a Direct materials Direct labor Manufacturing overhead cost b Total Job 845 cost Total Job 845 cost Total Job 845 cost
I could use some help answering this with the attached spreadsheet:
Glassman Company acculated the following data for 2019:
| Milling Department manufacturing |
$484,000 |
| Finishing Department manufacturing overhead | $260,000 |
| Machine hours used | |
| Milling Department | 10,000 |
| Finishing Deparment | 2000 |
| Labor hours used | |
| Milling Department | 1000 |
| Finishing Department | 1000 |
Assume that manufacturing overhead for Glassman Company above consisted of the following activities and costs:
| Setup (1000 setup hours) | $288,000 |
| Production scheduling (400 batches) | $60,000 |
| Production engineering (60 change orders) | $180,000 |
| Supervision (2000 direct labor hours) | $56,000 |
| Machine maintenance (12,000 machine hours) | $168,000 |
| Total activity costs | $752,000 |
The following additional data were provided for Job 845:
| Direct materials costs | $7000 |
| Direct labor cost (5 milling direct labor hours; 35 finishing direct labor house) | $1000 |
| Setup hours | 5 hours |
| Production scheduling | 1 batch |
| Machine hours used (25 milling machine hours; 5 finishing machine hours) | 30 hours |
| Product engineering | 3 change orders |
Problems:
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 overhead costs.
c) Calculate the cost of Job 845 using the company-wide overhead rate based on machine hours calculated.
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.
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