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

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

Edmund produces two wheel rim models: standard and deluxe. Expected data for $2024$ are as follows: $($Click the icon to view the expected data.$)$

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

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.

Requirements

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

Prior to $2024,$ Edmund 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.

Compute the estimated ABC indirect manufacturing cost per unit of each model for $2024.$ Carry each cost per unit to the nearest cent.

Data table

$\backslash$table$[[$Activity$,$Allocation Base,$\backslash$table$[[$Predetermined Overhead$],[$Allocation Rate$]]],[$Materials handling,Number of parts,$$5\mathrm{.}00$ per part$],[$Machine setup,Number of setups,$300\mathrm{.}00$ per setup$],[$Insertion of parts,Number of parts,$25\mathrm{.}00$ per part$],[$Finishing$,$Number of finishing hours,$60\mathrm{.}00$ per hour$]]$

Data table

$\backslash$table$[[,$Standard,Deluxe$],[$Parts per rim,$8\mathrm{.}0,9\mathrm{.}0],[$Setups per $500$ rims,$14\mathrm{.}0,14\mathrm{.}0],[$Finishing hours per rim,$5\mathrm{.}0,6\mathrm{.}5],[$Total direct labor hours per rim,$6\mathrm{.}0,7\mathrm{.}0]]$