Cost Management Systems: Activity-Based, Just-in-Time, and Quality Management S E19-16 Computing and using departme ntal overhead allocation rates Koehler (see Esercise E19-15) makes handheld calculators in wo models-basic and d wants to refine its costing system by allocating overhead using pro departmental rates. The estimated $721,000 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department. The following data have been compiled: Professional, total O Assembly Department ac Department Total 456,500 264,500 721,000 Overhead costs Machine hours: Basic Model Professional Model Total 185,000 MHr 230,000 MHr 415,000 MHr 45,000 MHr 55,000 MHr 100,000 MHr 230,000 MHr 285,000 MHr 515,000 MHr Direct labor hours: Basic Model Professional Model Total 50,000 DLHr 105,125 DLHr280,625 DLHr 330,625 DLHr 70,000 DLHr 385,750 DLHr 455,750 DLHr 125,125 DLHr Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. How much overhead is allocated to the basic mode? To the professional model? Round allocation rates to two decimal places and allocated costs to whole dollars tive 2 E19-18 Computing product costs in an activity-based costing system Franklin, Inc. uses activity-based costing to account for its chrome bumper manu- facturing process. Company managers have identified four manufacturing activities materials handling, machine setup, insertion of parts, and finishing The budgeted activity costs for 2018 and their allocation bases are as follows: 310 per setup Allocation Base Activity Materials handling Machine setup Insertion of parts Finishing Total Total Budgeted Cost 12,000 3,100 42,000 86,000 Number of parts Number of setups Number of parts Finishing direct labor hours $ 143,100 Franklin expects to produce 500 chrome bumpers during the year. The bumpers ane expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Requirements 1. Compute the predetermined overhead allocation rate for each activity 2. Compute the expected indirect manufacturing cost of each bumper