Bancroft Inc. 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 set-up, insertion of pa finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: i (Click the icon to view the budgeted costs and activity bases.) Bancroft Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,200 parts, require 25 set-ups, and consume 2,300 hours of finishing time. Job 420 used 250 parts, required 4 set-ups, and consumed 120 finishing hours. Job 510 used 600 parts, required 5 set-ups, and consumed 320 finishing hours. Requirements Requirement 1. Compute the cost allocation rate for each activity. First, identify the formula, and then compute the rate for each activity. Mat. handling Machine setup Insertion Finishing Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. Activity Materials handling Machine setup Insertion of parts Finishing MOH Cost Budgeted costs and activity bases Total Budgeted Manufacturing Overhead Cost Activity overhead rate /part /setup / part Activity Materials handling Machine set-up Insertion of parts Finishing.. Allocation Base $ 6,400 Number of parts 9,000 Number of set-ups 54,400 Number of parts 89,700 Finishing direct labour hours /hour $ 159,500 Total Print Done