Elkin Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2016: (Click the icon to view the allocation rates.) Elkin produces two wheel rim models: standard and deluxe. Expected data for 2016 are as follows: (Click the icon to view the expected data.) The company expects to produce 500 units of each model during the year. Requirement 1. Compute the total estimated indirect manufacturing cost for 2016. 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 2016. Total Estimated Activity Indirect Manufacturing Cost Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost 2. Requirements 1. Compute the total estimated indirect manufacturing cost for 2016. Compute the estimated ABC indirect manufacturing cost per unit of each model. Carry each cost to the nearest cent Prior to 2016, Elkin used a direct labor hour single plantwide overhead allocation rate system. Compute the predetermined overhead allocation rate based on direct labor hours for 2016. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent. 3. Data Table Predetermined Overhead Allocation Rate Allocation Base $ 7.00 per part Activity Materials handling Machine setup Insertion of parts Finishing Number of parts Number of setups Number of parts Number of finishing hours 200.00 per setup 26.00 per part 50.00 per hour Data Table Standard Deluxe 6.0 10.0 15.0 15.0 Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim 1.0 6.5 4.0 8.0