Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3

[The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

Production Activity	Indirect Labor				Indirect Materials				Other Overhead
Grinding	$	390,000
Polishing					$	130,000
Product modification		450,000
Providing power									$	260,000
System calibration		560,000

Additional information on the drivers for its production activities follows.

Grinding	18,000	machine hours
Polishing	18,000	machine hours
Product modification	1,900	engineering hours
Providing power	14,000	direct labor hours
System calibration	650	batches

	Job 3175		Job 4286
Number of units	180	units	2,250	units
Machine hours	450	MH	4,500	MH
Engineering hours	34	eng. hours	18	eng. hours
Batches	10	batches	30	batches
Direct labor hours	430	DLH	3,870	DLH

Problem 17-3A Parts 2, 3 & 4

2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost pool. Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round your activity rate and average overhead cost per unit to 2 decimal places. Round "overhead assigned" to the nearest whole dollar.)

						Job 3175		Job 4286
Activity	Overhead Cost	Activity Drivers		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Grinding & Polishing			Machine hours
Product modification			Engineering hrs.
Providing power			Direct labor hrs.
System calibration			batches