Eaton Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the icon to view the allocation rates.) Eaton produces two wheel rim models: standard and deluxe. Expected data for 2018 are as follows: Click the icon to view the expected data.) Begin by selecting the formula to compute the total estimated overhead (OH) costs. The company expects to produce 500 units of each model during the year. Read the requirements. Predetermined overhead allocation rate Total estimated qty of the allocation base = Total estimated overhead costs Now compute the total estimated indirect manufacturing cost for 2018. Activity Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost Total Estimated Indirect Manufacturing Cost 39,000 27,200 175,500 297,500 539,200 Requirement 2. Prior to 2018, Eaton 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 2018. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent. First, select the formula, and then enter the amounts to compute the allocation rate. Choose from any list or enter any number in the input fields and then click Check Answer. = Allocation rate i Data Table Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim Print Done 1 Data Table Standard Deluxe 3.0 10.0 17.0 17.0 Activity Materials handling Machine setup 2.0 6.5 Insertion of parts Number of parts Number of setups Number of parts Allocation Base Predetermined Overhead Allocation Rate $6.00 per part 800.00 per setup 27.00 per part 3.0 7.0 Finishing Number of finishing hours 70.00 per hour Print Done