Chapter 4 Problem 2 The following information applies to the questions displayed

Question

Chapter 4 Problem 2

The following information applies to the questions displayed belowJ Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its compony records Production Activity Grinding Indirect Labor Indirect Materials Other Overheod 330,000 400,000 520,000 S 210,000 Product modification Providing power System calibration $ 250,000 Additional information on the drivers for its production octivities follows. Grinding 13,000 machine hours 13,000 machine hours Product modification Providing power System calibration 1,300 engineering hours 13,000 direct labor hours 250 batches Job 3175 Job 4286 2,375 units 4,500 MH 190 Number of units units Mochine hours Engineering hours Batches 450 MH 33 eng.hours 25 batches 26 eng.hours 75 batches 4,320 Direct labor hours 480 DLH DLH

Explanation / Answer

1.

Grinding Unit level Polishing Unit level Product modification Product level Providing power Facility level System calibration Batch level

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