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Product DL hours Plantwide OH rate Total Overhead Cost Units OH Cost per Produced unit Job 3175 Job 4286
Required information
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Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.
Production ActivityIndirect Labor Indirect Materials Other OverheadGrinding$350,000 Polishing $215,000 Product modification 400,000 Providing power $220,000 System calibration 540,000
Additional information on the drivers for its production activities follows.
Grinding15,000machine hoursPolishing15,000machine hoursProduct modification1,900engineering hoursProviding power13,000direct labor hoursSystem calibration1,050batches
Job 3175Job 4286Number of units220units2,750unitsMachine hours300MH3,000MHEngineering hours29eng. hours24eng. hoursBatches35batches105batchesDirect labor hours420DLH3,780DLH
5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)
ProductDL hoursPlantwide OHrateTotal Overhead CostUnitsOH Cost perProducedunitJob 3175Job 4286