Edgar Company manufactures wheel rims. The controller budgeted ABC allocation rates for 2024. Edgar produces two wheel rim models: standard and deluxe. Budgeted data for 2024 are as follows: (Click the icon to view the 2024 allocation rates and budgeted data.) (Click the icon to view additional information, budgeted information and the deluxe unit cost calculation.) Controller Mike Burns is surprised by the increase in cost of the deluxe model under ABC. He had a market research study conducted. (Click the icon to view the results of the market research.) Would implementing the value engineering recommendation enable Edgar to achieve its target cost for the deluxe rim? Begin by selecting the formula to allocate overhead (OH) costs. Then enter the amounts to calculate the revised finishing activity cost per rim. Actual qty of the allocation base used 4 Predetermined OH allocation rate 40 = = Allocated mfg. overhead costs $ 160 Would implementing the value engineering recommendation enable Edgar to achieve its target cost for the deluxe rim? (Round the calculation of the total cost to the nearest cent.) the value engineering process will bring the cost per deluxe model rim to the target cost per rim of $504.00. which is More info for 2024 are as follows. the deluxe unit He had a marke esearch study onducted. (Click the icon to view the results of the market research.) Would implementing the value engineering recommendation enable Edgar to achieve its target cost for the deluxe rim? Market research shows that for the deluxe rim to provide a reasonable profit, Edgar will have to meet a target manufacturing cost of 504.00 per rim. A value engineering study by Edgar's employees suggests that modifications to the finishing process could cut finishing cost from $50.00 to $40.00 per hour and reduce the finishing direct labor hours per deluxe rim from 4.5 hours to 4.0 hours. Direct materials would remain unchanged at $51.00 per rim, as would direct labor at $54.00 per rim. The materials handling, machine setup, and insertion of parts activity costs also would remain the same. the amounts to calculate the revised finishing activity cost per rim. Print Done location rate = Allocated mfg. overhead costs = $ 160 Data table In 2025, Edgar's managers used the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025. estio Data table estio x Standard Activity Allocation Base Predetermined Overhead Allocation Rate Sales price Direct materials Direct labor $ Deluxe 900.00 $ 1,040.00 34.00 48.00 51.00 54.00 estio Materials handling Number of parts Machine setup Number of setups Insertion of parts Number of parts $2.00 per part 300.00 per setup 24.00 per part estio Finishing Number of finishing hours 50.00 per hour ABC cost per unit: Materials handling Quantity of allocation base used Predetermined overhead allocation rate Allocated activity cost per rim (Deluxe) 7.0 2.00 = $ Standard Deluxe Machine setups 0.024 $ 300.00 = 14.00 7.20 estio Parts per rim 5.0 7.0 Insertion of parts 7.0 $ 24.00 = 168.00 Setups per 500 rims 12.0 12.0 225.00 Finishing direct labor hours 4.5 $ 50.00 = Finishing hours per rim 4.0 4.5 $ 414.20 Total me s Total direct labor hours per rim 5.0 7.0