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on corn now/connect.html?isReg.true&returnuna; https%2A%2F%2Fconnect. m education conse paarmeeb%2Findex.htmh Help Save Required information The following information applies to the questions displayed below.) Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records Grinding Palishing Product sodification Providing power System calibration 320,000 600,00 500,000 $135, 000 $255, 000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 13,000 rachine hours 1,500 engineering hours 17,000 direct labor hours 400 batches Required Pre123 5 of 22 Score anwer 9 LI dl 9

Explanation / Answer

1) Calculation of Activity Overhead Rate :-

Activity Calculation Activity Rate Grinding & Polishing ($320000+$135000) / 13000 MH $35 per MH Product Modification $600000 / 1500 EH $400 per EH Providing Power $255000 / 17000 DLH $15 per DLH System Calibration $500000 / 400 Batches $1250 per Batch

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