Eason Company Manufactures wheel rims. The controller expects the following ABC allocation rates for 2024: (Allocation Rates in below).

Eason produces two wheel rim models: standard and deluxe. Expected data for 2024 are as follows: (Data Table Below)

The company expects to produce 500 units of each model during the year.

Read the requirements. (Below)

My progress so far: (Below)

Predetermined Overhead Allocation Rate Activity Allocation Base 4 $4.00 per part Materials handling Number of parts Number of setups til Machine setup fa Insertion of parts Finishing 400.00 per setup 26.00 per part 90.00 per hour Number of parts Number of finishing hours Standard Deluxe Parts per rim 4.0 7.0 Setups per 500 rims 18.0 18.0 1.0 5.5 Finishing hours per rim Total direct labor hours per rim 5.0 6.0 1. Compute the total estimated indirect manufacturing cost for 2024. 2. Prior to 2024, Eason 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 wheel rim for each model, to the nearest cent. 3. 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. Total estimated overhead costs = Predetermined overhead allocation rate Total estimated qty of the allocation base Now compute the total estimated indirect manufacturing cost for 2024. Total Estimated Activity Indirect Manufacturing Cost Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost Enter any number in the edit fields and then click Check