Barre-Groton 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 parts, and 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.) Barre-Groton Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,900 parts, require 15 set-ups, and consume 1,800 hours of finishing time. Job 420 used 200 parts, required 2 set-ups, and consumed 130 finishing hours. Job 510 used 550 parts, required 4 set-ups, and consumed 380 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. Activity - X overhead rate Budgeted costs and activity bases Mat. handling 11 / part Machine setup / setup Insertion / part Total Budgeted Manufacturing Finishing / hour Activity Overhead Cost Allocation Base Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. Materials handling . . . . $ 8,700 Number of parts Activity MOH Cost Machine set-up 4.650 Number of set-ups 49,300 Materials handling Insertion of parts . . . . . Number of parts Machine setup Finishing. . . . 75,600 . . . . . . Finishing direct labour hours 138,250 Insertion of parts $ Total . . . . . . . . . . . . . . . Finishing Total Requirement 3. Compute the manufacturing overhead cost that should be assigned to Job 510. Print Done Activity MOH Cost Materials handling Machine setup Insertion of parts Finishing Total