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 allocat bases are as follows: i (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 1,500 hours of finishing time. Job 420 used 150 parts, required 3 set-ups, and consumed 140 finishing hours. Job 510 used 550 parts, required 6 set-ups, and consumed 400 finishing hours. - X Requirements Budgeted costs and activity bases Requirement 1. Compute the cost allocation rate for each activity. First, identify the formula, and then compute the rate for each activity. Total Budgeted Activity Manufacturing overhead rate Activity Overhead Cost Allocation Base 11 11 Mat. handling / part Materials handling . . .. 9,000 Number of parts Machine setup = / setup Machine set-up 3,500 Number of set-ups Insertion part Insertion of parts 45,000 Number of parts Finishing / hour Finishing. 78,000 Finishing direct labour hours Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. $ 135,500 Total Activity MOH Cost Materials handling Machine setup Print Done Insertion of parts Finishing X Requirements Tota Requirement 3. Compute the manufacturing overhead cost that should be assigned to Job 510. 1. Compute the cost allocation rate for each activity. Activity MOH Cost 2. Compute the MOH cost that should be assigned to Job 420. 3. Compute the MOH cost that should be assigned to Job 510. Materials handling Machine setup Insertion of parts Finishing Print Done Total