A B C D E F G H 1 Activity-Based Costing, Lean Operations, and the Costs of Quality 2 Compute activity rates and apply to jobs 3 4 Fuller Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: 5 69 7 009 8 10 11 12 2 Activity Materials handling Machine setup Insertion of parts Finishing Total Total Budgeted Manufacturing Overhead Cost Allocation Base $12,000 Number of parts 3,400 Number of setups 48,000 Number of parts 80,000 Finishing direct labor hours $143.400 Fuller Company expects to produce 1,000 chrome wheels during the year. The wheels are 13 expected to use: Parts Setups 14 15 16 45 Finishing Hours Consumed 3,000 10 2,000 Finishing Setups 17 Parts Used Required Hours Consumed 18 Job 420 200 2 130 19 Job 510 425 4 350 20 21 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 22 copy/paste from the Instruction tab you will be marked wrong. 23 24 Requirements 25 1 Compute the cost allocation rate for each activity. 26 2 Compute the manufacturing overhead cost that should be assigned to Job 420. 27 3 Compute the manufacturing overhead cost that should be assigned to Job 510. 28