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Activity Materials handling Machine setup Insertion of parts Allocation Base Number of parts Number of setups Number of parts Finishing direct labor hours Activity Cost
Activity Materials handling Machine setup Insertion of parts Allocation Base Number of parts Number of setups Number of parts Finishing direct labor hours Activity Cost Allocation Rate $ 4.50 per part $325.00 per setup $ 31.00 per part Finishing $ 51.00 per hour Standard Deluxe Units 1,000 Expected production for each model Parts per wheel Setups per 1,000 wheels Finishing direct labor hours per wheel Total direct labor hours per wheel 4.0 20.0 1.0 2.7 6.0 20.0 3.0 3.8 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Always use cell references and formulas where appropriate to receive full credit.) Total Budgeted Indirect Cost Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect costs 2. Compute the manufacturing overhead cost per wheel of each model using ABC. (Always use cell references and formulas where appropriate to receive full credit.) Activity Allocated Activity Cost Per Wheel Standard Deluxe Materials handling Machine setups Insertion of parts Finishing Total ABC allocated indirect cost 3. Compute the company's traditional plantwide overhead rate. (Always use cell references and formulas where appropriate to receive full credit.) Plant overhead rate per direct labor hour Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Manufacturing overhead cost per wheel Standard Deluxe
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