Question
Activity Total Budgeted Manufacturing Overhead Cost Allocation Base Materials handling $5,800 Number of parts Machine set-up 6,600 Number of set-ups Insertion of parts 40,600 Number
Activity Total Budgeted Manufacturing Overhead Cost Allocation Base Materials handling $5,800 Number of parts Machine set-up 6,600 Number of set-ups Insertion of parts 40,600 Number of parts Finishing 112,500 Finishing direct labour hours Total $165,500 Great Plain expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,900 parts, require 22 set-ups, and consume 2,500 hours of finishing time. Job 400 used 260 parts, required 3 set-ups, and consumed 130 finishing hours. Job 450 used 485 parts, required 6 set-ups, and consumed 300 finishing hours. Requirements 1 Compute the cost allocation rate for each activity. 10 MARKS 2 Compute the MOH cost that should be assigned to Job 400. 5 MARKS 3 Compute the MOH cost that should be assigned to Job 450. 5 MARKS
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