Craftmore Machining reports the following budgeted overhead cost and related data for this year. ...
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Accounting
Craftmore Machining reports the following budgeted overhead cost and related data for this year.
Activity
Budgeted Cost
Activity Cost Driver
Budgeted Activity Usage
Assembly
$ 438,750
Direct labor hours (DLH)
13,000
Product design
67,500
Engineering hours (EH)
1,350
Electricity
22,500
Machine hours (MH)
10,000
Setup
56,250
Setups
450
Total
$ 585,000
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 280 direct labor hours and Job 42 used 560 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
Activity Usage
Job 31
Job 42
Direct labor hours (DLH)
280
560
Engineering hours (EH)
31
37
Machine hours (MH)
52
56
Setups
4
6
1 ch TIE LO oo 1111 - 1211
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