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Brooklyn Cycles produces custom bicycles and has used a traditional manufacturing overhead application rate based on direct labor hours. Currently, overhead is applied at
Brooklyn Cycles produces custom bicycles and has used a traditional manufacturing overhead application rate based on direct labor hours. Currently, overhead is applied at the rate of $26.5/DLH. Brooklyn is now considering using activity-based driver rates to improve manufacturing overhead costing accuracy. Budgeted manufacturing overhead costs for expected driver activity are as follows: Machining time Direct labor time Inspection time Budgeted Cost $ 267,750 297,250 38,250 Budgeted Activity 10,500 hours 20,500 hours 4,500 hours Required: Calculate manufacturing overhead rates that would be applied to bicycles produced using activity-based costing. Note: Round your answers to 1 decimal place. Machining rate Direct labor rate Inspecting rate Activity Costing Rate machine hour direct labor hour inspection hour
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