E24-17 Computing product cost in traditional and activity-based costing systems Cost Allocation an Elcon Company manufactures wheel tims. The controllet expects the following ABC allocation rates for 2014: Predetermined Overhead Activity Allocation Rate Materials handling 5400 per part Machine setup 500.00 per setup Insertion of parts 23.00 per part Finishing 50.00 per hour Elton produces two wheel rim models: standard and deluxe. Expected data for 2014 are as follows: Allocation Base Number of parts Number of setups Number of parts Number of finishing hours 70 Standard Deluxe Parts per rim 6.0 9.0 Setups per 500 rims 17.0 17.0 Finishing hours per rim 5.0 6.5 Total direct hours per rim 6.0 The company expects to produce 500 units of each model during the year. Requirements 1. Compute the total estimated indirect manufacturing cost for 2014. 2. Compute the estimated ABC indirect manufacturing cost per unit of cach model. Carry each cost to the nearest cent. 3. Prior to 2014, Elton used a direct labor hour single planewide allocation rate system. Compute the allocation rate based on direct labor hours for 2014. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for cach model, to the nearest cent