Erickson Company manufactures wheel rims. The controller expects the following ABC allocation rates f EEB Click the icon to view the allocation rates) Erickson produces two wheel rim models: standard and deluxe. Expected data for 2016 are as follows: EB (Click the icon to view the expected data.) The company expects to produce 500 units of each model during the year. Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost Requirement 2. Compute the estimated ABC indirect manufacturing cost per unit of each model. Carry eadi Compute the costs per unit for the standard model first, then the deluxe model. (Carry the setup cost per rim 16,500 16,800 148,500 180,000 361,800 Allocated Mfg. Cost Per Rim Standard Activity Materials handling Machine setup Insertion of parts Finishing Total indirect cost per rim 160 Enter any number in the edit fields and then click Check Answer 3 of 6 (5 complete) cts the following ABC allocation rates for 2016 Requirements 1. Compute the total estimated indirect manufacturing cost 2. Compute the estimated ABC indirect manufacturing cost xpected data for 2016 are as follows: cent. Prior to 2016, Erickson used a direct labor hour single pl predetermined overhead allocation rate based on direct I estimated indirect manufacturing cost per wheel rim for e 3. the year ing cost rhead (O Data Table Predetermined Overhead ed overh 2016 EstimatelMachine setup Activity Allocation Base Allocation Rate s 3.00 per part Number of parts Number of setups Number of parts Number of finishing hours Materials handling 600.00 per setup 27.00 per part 80.00 per hour nufacturi Insertion of parts Finishing Print Done ring cost per unit of each model. Carry each cost to the nearest cent. deluxe model. (Carry the setup cost per rim to three decimal places) wer Clear All 3 of 6 (5 complete) s the following ABC allocation rates for 2016 Requirements 1. Compute the total estimated indirect manufacturing cost for 2016 2. Compute the estimated ABC indirect manufacturing cost per unit ected data for 2016 are as follows: cent 3. Prior to 2016, Erickson used a direct labor hour single plantwide c predetermined overhead allocation rate based on direct labor hou estimated indirect manufacturing cost per wheel rim for each mod e year cost Data Table ead (O d overh Standard Deluxe 16. Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim 9.0 14.0 2.5 5.0 2.0 140 140 2.0 3.0 facturi Print Don ng cost per unit of each model. Carry each cost to the nearest cent. eluxe model. (Carry the setup cost per rim to three decimal places.) ver Clear All a mathxl ACCT 202 Managerial Accounting (2019 Spring)- Section 2 Homework: HW5 Score: 3.33 of 20 pts & E24-17 (book/static) 3 of 6 (5 com Erickson Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2016: EB (Click the icon to view the allocation rates.) Erickson produces two wheel rim models: standard and deluxe. Expected data for 2016 are as follows: EEB (Click the icon to view the expected data.) The company expects to produce 500 units of each model during the year Ro 2. 3. 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 Total estimated qty of the alocation base x Now compute the total estimated indirect manufacturing cost for 2016 Predetermined overhead allocation rate Total Estimated Activity Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost Indirect Manufacturing Cost 6,500 16,800 148,500 180,000 Requirement 2. Compute the estimated ABC indirect manufacturing oost per unit of each model. Carry each cost to the nearest Compute the costs per unit for the standard model first, then the deluxe model. (Carry the setup cost per rim to three decimal plac Enter any number in the edit fields and then click Check Answer Clear All
