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Brampton Inc. uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials
Brampton 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: (Click the icon to view the budgeted costs and activity bases.) Brampton Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,750 parts, require 15 set-ups, and consume 1,700 hours of finishing time. Job 420 used 300 parts, required 4 set-ups, and consumed 180 finishing hours. Job 510 used 575 parts, required 6 set-ups, and consumed 360 finishing hours. Requirements 1. Compute the cost allocation rate for each activity. 2. Compute the MOH cost that should be assigned to Job 420. 3. Compute the MOH cost that should be assigned to Job 510. Total Budgeted Manufacturing
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