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# 6 . Fortune, Inc., uses activity - based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities:

#6. Fortune, Inc., uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2024 and their allocation bases are as follows:
\table[[Activity,Budgeted Cost,Allocation Base],[Materials handling,6,000,Number of parts],[Machine setup,3,300,Number of setups],[Insertion of parts,45,000,Number of parts],[Finishing,78,000,Finishing direct labor hours]]
Fortune expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 3,000 parts, require 30 setups, and consume 1,500 hours of finishing time.
Compute the cost allocation rates using activity-based costing.
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