Required information

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

						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