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Problem 4-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine

Problem 4-3A 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 $ 310,000
Polishing $ 200,000
Product modification 450,000
Providing power $ 220,000
System calibration 510,000

Additional information on the drivers for its production activities follows.

Grinding 15,000 machine hours
Polishing 15,000 machine hours
Product modification 1,900 engineering hours
Providing power 16,000 direct labor hours
System calibration 900 batches

Job 3175 Job 4286
Number of units 130 units 1,625 units
Machine hours 450 MH 4,500 MH
Engineering hours 26 eng. hours 22 eng. hours
Batches 10 batches 30 batches
Direct labor hours 480 DLH 4,320 DLH

Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit
Job 3175
Job 4286

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