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: Activity Materials handling Machine setup Insertion of parts Finishing Budgeted Cost 6,000 3,300 45,000 76,500 Allocation Base Number of parts Number of setups Number of parts Finishing direct labor hours Fortune expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 3,000 parts, require 33 setups, and consume 1,500 hours of finishing time. Compute the cost allocation rate using activity based costing.

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: Fortune expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 3,000 parts, require 33 setups, and consume 1,500 hours of finishing time. Compute the cost allocation rate using activity based costing