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. day cen Elkin Company manufactures wheel rims. The controller Requirements expects the following ABC allocation rates for 2016: 1. Compute the total estimated indirect

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. day cen Elkin Company manufactures wheel rims. The controller Requirements expects the following ABC allocation rates for 2016: 1. Compute the total estimated indirect manufacturing cost (Click the icon to view the allocation rates.) for 2016 Elkin produces two wheel rim models: standard and deluxe. 2. Compute the estimated ABC indirect manufacturing cost per unit of each model. Carry each cost to the 07 Expected data for 2016 are as follows: nearest cent tha Click the icon to view the expected data.) 3. Prior to 2016, Elkin used a direct labor hour single The company expects to produce 500 units of each model plantwide overhead allocation rate system. Compute during the year. the predetermined overhead allocation rate based on direct labor hours for 2016. Use this rate to determine 4 the estimated indirect manufacturing cost per wheel rim NO for each model, to the nearest cent. IM Requirement 1. Compute the total estimated indirect manufacturing cost for 2016. Begin by selecting the formula to compute the total estimated overhead (OH) costs. 90 ben W. om Total estimated Predetermined overhead allocation rate Total estimated qty of the allocation base overhead costs eel Now compute the total estimated indirect manufacturing cost for 2016. Total Estimated Total Estimated Activity Materials handling Machine setup Insertion of parts Indirect Manufacturing Cost $ 56,000 6,000 208,000 187,500 Finishing $ 457,500 Total estimated indirect manufacturing cost of Data Table ar Standard Deluxe 6.0 10.0 15.0 15.0 Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim 1.0 6.5 4.0 8.0 Print Done Requirement 2. Compute the estimated ABC indirect manufacturing cost per unit of each model. Carry each cost to the nearest cent. Compute the costs per unit for the standard model first, then the deluxe model (Carry the setup cost per rim to three decimal places.) Allocated Mfg. OH Cost Per Rim Data Table Activity Standard Materials handling Machine setup Insertion of parts Predetermined Overhead Allocation Rate $ Finishing Total indirect cost per rim Activity Materials handling Machine setup Insertion of parts Finishing Allocation Base Number of parts Number of setups Number of parts Number of finishing hours 7.00 per part 200.00 per setup 26.00 per part 50.00 per hour Enter any number in the edit fields and then click Check Answe

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