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Central Plain uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs:
Central Plain uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handing machine setup, 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 data) Central Plain expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,700 parts require 10 setups, and consume 1,800 hours of finishing (Click the icon for completed job date) Read the Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each Mal handing Mach setup Vaarton Finishing Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 4201 Activity Materials handling Machine setup Insertion of parts Frishing Tira MOH Cost More info Job 420 used 200 parts, required 4 setups, and consumed 110 finishing hours Job 510 used 450 parts, required 5 setups, and consumed 300 finishing hours Activity cost alocation rate per part Print Done per setu . per part per hour Activity Manufacturing Overhead Cost Allocation Base Materials handling 5 13.500 Number of parts Machine setup.. 4,000 Number of stup Insertion of parts Finishing- Total.. 48.800 Number of parts 82.800 Finishing direct labor hours 140,000 Print Done
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