Company manufactures wheel rims. The controller expects the following ABC allocation rates for $2024$

The company expects to produce $500$ units of each model during the year. $($Click the icon to view the allocation rates$)$

Read the requirements.

$($Click the icon to view the expected data.$)$

Requirements

Data table

Compute the total estimated indirect manufacturing cost for $2024$

Prior to $2024,$ Elton used a single plantwide overhead allocation rate system with direct labor hours as the allocation base. Compute the predetermined overhead allocation rate based on direct labor hours for $2024.$ Use this rate to determine the estimated indirect manufacturing cost per soel rim for each model, to the nearest cent

Compute the estimated ABC indirect manufacturing cost per unit of each model for $2024.$ Carry each cost per unit to the nearest cent.

Requirement $1.$ Compute the total estimated indirect manufacturing cost for $2024$

Begin by selecting the formula to compute the total estimated overhead $(OH)$ costs

Predetermined overhead allocation rate Total estimated qty of the a

Now compute the total estimated indirect manufacturing cost for $2024$

Activity

Materials handling

Machine setup

Insertion of parts

Finishing

Total estimated indirect manufacturing cost