Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Activity...

Transcribed Image Text:

Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Activity Cost Driver Direct labor hours (DLH) Budgeted Cost Assembly $ 409,500 Product design Electricity 63,000 21,000 Engineering hours (EH) Machine hours (MH) Setup Total 52,500 Setups $ 546,000 Budgeted Activity Usage 13,000 1,000 10,500 420 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 220 direct labor hours and Job 42 used 500 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 Activity Usage Job 31 Job 42 220 500 28 34 52 4 62 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Numerator Denominator Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Activity Cost Driver Direct labor hours (DLH) Budgeted Cost Assembly $ 409,500 Product design Electricity 63,000 21,000 Engineering hours (EH) Machine hours (MH) Setup Total 52,500 Setups $ 546,000 Budgeted Activity Usage 13,000 1,000 10,500 420 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 220 direct labor hours and Job 42 used 500 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 Activity Usage Job 31 Job 42 220 500 28 34 52 4 62 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Numerator Denominator

Answer rating: 100% (QA)

To compute the single plantwide overhead rate we divide ... View the full answer