Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. 2. Identify a proper cost driver for each activity. * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify a proper cost driver for each activity. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.) Activities Cost Drivers a. Machine operation Machine hours Machine setup Number of setups or setup hours C. Production scheduling Number of production orders d. Materials receiving Number of material receipts; Number of purchase orders Research and development Number of products Machine maintenance Number of machine hours; Number of machines Product design Number of engineering change notices; Number of modifications; Number of products Parts administration Number of parts; Number of products; Number of purchase orders Final inspection of a sample of products Number of inspection hours X Materials handling Number of loads X Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. 2. Identify a proper cost driver for each activity. * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.) Activities Activity Levels a Machine operation Unit-level b. Machine setup Batch-level C. Production scheduling Batch-level Materials receiving Batch-level Research and development Product-level f. Machine maintenance Facility-level g. Product design Product-level h. Parts administration Product-level i. Final inspection of a sample of products Batch-level i. Materials handling Batch-level X The following information applies to the O'Donnell Company for March production. There are only two jobs (X and Y) in production in March. a. Purchased direct materials and indirect materials with the following summary of receiving reports: Material A $ 17,000 Material B 12, 500 Indirect materials 3,500 Total $ 33,000 b. Issued direct materials and indirect materials with this summary of requisitions: Job X Job Y Total Material A $ 8,200 $ 16, 400 $ 24, 600 Material B 3,200 8, 200 11, 400 Subtotal $ 11, 400 $ 24,600 $ 36,000 Indirect materials 39,500 Total $ 75,500 c. Factory labor incurred is summarized by these time tickets: Job X $ 22, 400 Job Y 15, 200 Indirect labor 28,500 Total $ 66, 100 d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows: Utilities $ 3,200 Depreciation 18, 400 Insurance 2, 700 Total $ 24,300e. Factory overhead costs were applied tojobs at the predetermined rate of $47.00 per machine hour. Job X incurred 1310.0 machine hours; Job Y used 800 machine hours. f. Job X was completed; Job Y was still in process at the end of March. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March. Required: 1. Calculate the total manufacturing cost for Job X and Job '1' for March. 2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will he increaSed or decreased by the adjustment. 11 Total manufacturing costs - Job X Total manufacturing oasis - Job Y Coot of goods sold