Problem $3$

Solve the given problem based on the following information.

JordanCompany's overhead costs are as follows:

Production Activity Indirect Labor $($$$)$ Indirect Materials $($$$)$ Other Overheads $($$$)$

Grinding $352,000$

Sanding $148,500$

Product modification $660,000$

Electrical $280,500$

System calibration $550,000$

Activity Resources

Grinding $13,000$ machine hours

Sanding $13,000$ machine hours

Product modification $1,500$ engineering hours

Electrical $17,000$ direct labor hours

System calibration $400$ batches

Job P and Job Q use the following resources:

Resources Job P Job Q

Batches $3090$

Engineering hours $2632$

Machine hours $5505,500$

Direct labor hours $5004,375$

Job P Job Q

Number of units $2002,500$

Given the information in the table above, compute overhead costs for each job.

Round the overhead rates to two decimal places. Round all other numbers to the nearest dollar.

Activity Job P Job Q

Grinding

Polishing

Product modification

Providing power

System calibration

Total cost of job