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 handling, 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 budgeted costs and activity bases.) Central Plain expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,900 parts, require 15 setups, and consume 1,800 hours of finishing time. Job 420 used 100 parts, required 2 setups, and consumed 140 finishing hours. Job 510 used 475 parts, required 3 setups, and consumed 320 finishing hours. Read the requirements. Data Table Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity Activity cost allocation rate Total Budgeted Manufacturing Overhead Cost Activity Allocation Base Requirements $ Materials handling ... Machine setup Insertion of parts 8,700 4,650 49,300 75,600 Number of parts Number of setups Number of parts 1. Compute the cost allocation rate for each activity. 2. Compute the manufacturing overhead cost that should be assigned to Job 420. 3. Compute the manufacturing overhead cost that should be assigned to Job 510. Finishing ........ Finishing direct labor hours $ 138,250 Total ............. Choose from ar Print Done Print parts 6 Done O remaining 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 handling, 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 budgeted costs and activity bases.) Central Plain expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,900 parts, require 15 setups, and consume 1,800 hours of finishing time. Job 420 used 100 parts, required 2 setups, and consumed 140 finishing hours. Job 510 used 475 parts, required 3 setups, and consumed 320 finishing hours. Read the requirements. Data Table Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity Activity cost allocation rate Total Budgeted Manufacturing Overhead Cost Activity Allocation Base Requirements $ Materials handling ... Machine setup Insertion of parts 8,700 4,650 49,300 75,600 Number of parts Number of setups Number of parts 1. Compute the cost allocation rate for each activity. 2. Compute the manufacturing overhead cost that should be assigned to Job 420. 3. Compute the manufacturing overhead cost that should be assigned to Job 510. Finishing ........ Finishing direct labor hours $ 138,250 Total ............. Choose from ar Print Done Print parts 6 Done O remaining
