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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 the
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 $26.3/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 Budgeted Activity $ 260,590 10,300 hours 290, 290 20,300 hours 35,690 4,300 hours Required: Calculate manufacturing overhead rates that would be applied to bicycles produced using activity- based costing. (Round your answers to 1 decimal place.) Activity Costing Rate Machining rate machine hour Direct labor rate direct labor hour Inspecting rate inspection hour
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