Edgar Company manufactures wheel rims. The controller expects the following ABC allocation rates for $2024$:

$($Click the icon to view the allocation rates.$)$

Edgar produces two wheel rim models: standard and deluxe. Expected data for $2024$ are as follows:

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

Read the requirements.

Requirement $1.$ Compute the total estimated indirect manufacturing cost for $2024.$

Begin by selecting the formula to compute the total estimated overhead $(OH)$ costs.

Now compute the total estimated indirect manufacturing cost for $2024.$

Total Estimated

Activity

Indirect Manufacturing Cost

Materials handling