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E7-18A COMPUTE ACTIVITY RATES AND APPLY TO JOBS (Learning Objective 2) Betelgeuse Inc. uses ABC to account for its chrome wheel manufacturing process. Company managers

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E7-18A COMPUTE ACTIVITY RATES AND APPLY TO JOBS (Learning Objective 2) Betelgeuse Inc. 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 set-up, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: Betelgeuse Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 2,000 hours of finishing time. Job 420 used 150 parts, required 1 set-up, and consumed 120 finishing hours. Job 510 used 400 parts, required 2 set-ups, and consumed 320 finishing hours. Requirements 1. Compute the cost allocation rate for each activity. 2. Compute the MOH cost that should be assigned to Job 420 . 3. Compute the MOH cost that should be assigned to Job 510. E7-18A COMPUTE ACTIVITY RATES AND APPLY TO JOBS (Learning Objective 2) Betelgeuse Inc. 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 set-up, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: Betelgeuse Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 2,000 hours of finishing time. Job 420 used 150 parts, required 1 set-up, and consumed 120 finishing hours. Job 510 used 400 parts, required 2 set-ups, and consumed 320 finishing hours. Requirements 1. Compute the cost allocation rate for each activity. 2. Compute the MOH cost that should be assigned to Job 420 . 3. Compute the MOH cost that should be assigned to Job 510

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