C4-25A (similar to) Several years after reengineering its production process, Zippy Corporation hired a new controller, Denise French. (Click the icon to view additional information.) For the upcoming year, Zippy's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) The number system. Zippy follows: (Click the Read the require Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places Zippy Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Total Budgeted Activity Cost Allocation Base Allocation Rate Indirect Cost Materials handling 1000 Machine setups 375 Insertion of parts Finishing 4 Total budgeted indirect cost Several years after reengineering its production process, Zippy Corporation hired a new controller, Denise French (Click the icon to view additional information.) For the upcomina vear. Zippy's budgeted ABC manufacturing overhead allocation rates are as follows: E * More Info R ar. (Enter the ratest She developed an ABC system very similar to the one used by Zippy's chief rival. Part of the reason French developed the ABC system was because Zippy's profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, the company had used a plantwide overhead rate based on direct labor hours that was developed years ago. M Data Table M ins Fid Allocation Base TO .... Activity Materials handling Machine setup Insertion of parts Finishing Activity Cost Allocation Rate $4.00 per part $375.00 per setup $28.00 per part $54.00 per hour Number of parts Number of setups Number of parts Finishing direct labor hours ... Ent Clear All Question Help The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: E (Click the icon to view the additional data.) Read the requirements. s to two decimal places.) i Data Table ... Standard Deluxe Parts per wheel 8.0 10.0 Setups per 1,000 wheels 20.0 20.0 2.0 3.5 Finishing direct labor hours per wheel 2.6 3.4 Total direct labor hours per wheel The company's managers expect to produce 1,000 units of each model during the year. HERE Done Print Check Answer ench. Question Help The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) Read the requirements. e rates to i Requirements 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Print Done Check
