Burnaby 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.) Burnaby Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 2,000 hours of finishing time. Job 420 used 150 parts, required 4 set-ups, and consumed 200 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 1 overhead rate 1 = part Mat. handling Machine setup 1 setup Insertion part Finishing = hour Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. MOH Cost Activity Materials handling Machine setup Insertion of parts Finishing Total i Budgeted costs and activity bases - X Activity Materials handling Machine set-up Insertion of parts Finishing Total Budgeted Manufacturing Overhead Cost $ 12,000 3,400 48,000 80,000 $ 143,400 Allocation Base Number of parts Number of set-ups Number of parts Finishing direct labour hours Total Print Done i Requirements - X 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. Print Done