Emery Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018:

1.	Compute the total estimated indirect manufacturing cost for 2018.
2.	Prior to 2018, Emery 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.
3.	Compute the estimated ABC indirect manufacturing cost per unit of each model for 2018. Carry each cost to the nearest cent.

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

Activity Allocation Base Predetermined Overhead Allocation Rate

Materials handling Number of parts $2.00 per part

Machine setup Number of setups 700.00 per setup

Insertion of parts Number of parts 22.00 per part

Finishing Number of finishing hours 80.00 per hour

Standard Deluxe

Parts per rim 3.0 8.0

Setups per 500 rims 16.0 16.0

Finishing hours per rim 6.0 6.5

Total direct labor hours per rim 7.0 9.0