also include ;

new cost of deluxe rim -

direct materials

direct labor

indirect manufacturing costs

materials handled

Empire Company manufactures wheel rims. The controller budgeted ABC allocation rates for 2024. Empire produces two wheel rim models: standard and deluxe. Budgeted data for 2024 are as follows: (Click the icon to view the 2024 allocation rates and budgeted data.) (Click the icon to view additional information, budgeted information and the deluxe unit cost calculation.) Begin by selecting the formula to allocate overhead (OH) costs. Then enter the amounts to calculate the revise Allocated mfg. overhead costs x = X Data table In 2025, Empire's managers used the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025. Standard Deluxe Sales price 700.00 $ 940.00 Direct materials 31.00 48.00 Direct labor 45.00 50.00 Predetermined Allocated activity cost per rim overhead allocation. ABC cost per unit: rate (Deluxe) Materials handling Machine setups Insertion of parts Finishing direct labor hours Total Quantity of allocation base used 6.0 0.034 6.0 6.5 $ x * S * S * S * S = 6.00 S 200.00 = 22.00 = 60.00 = S 36.00 6.80 132.00 390.00 564.80 Market research shows that for the deluxe rim to provide a reasonable profit. Empire will have to meet a target manufacturing cost of 623.00 per rim. A value engineering study by Empire's employees suggests that modifications to the finishing process could cut finishing cost from $60.00 to $50.00 per hour and reduce the finishing direct labor hours per deluxe rim from 6.5 hours to 6.0 hours. Direct materials would remain unchanged at $48.00 per rim, as would direct labor at $50.00 per rim. The materials handling, machine setup, and insertion of parts activity costs also would remain the same. Print Done Predetermined Overhead Allocation Rate Allocation Base Number of parts $6.00 per part 200.00 por setup Number of setups Number of parts 22.00 per part 60.00 per hour Number of finishing hours Data table Activity Materials handling Machine setup Insertion of parts Finishing Parts per rim Setups per 500 rims Finishing hours per rim. Total direct labor hours per rim Print Standard Done 5.0 17.0 5.0 6.0 Deluxe 6.0 17.0 6.5 8.0