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Farrington Company uses ABC to account for its chrome Farrington Company expects to produce 1,000 chrome wheel manufacturing process. Company managers have wheels during the

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Farrington Company uses ABC to account for its chrome Farrington Company expects to produce 1,000 chrome wheel manufacturing process. Company managers have wheels during the year. The wheels are expected to use identified four manufacturing activities that incur 2,900 parts, require 15 setups, and consume 1,800 hours manufacturing overhead costs: materials handling, machine finishing time. setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as (Click the icon for completed job data.) follows: Read the requirements. (Click the icon to view the data.) Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity day Mat, handling Activity cost allocation rate per part per setup per part Mach setup Insertion Finishing per hour Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. to MOH Cost Activity Materials handling Machine setup Insertion of parts al ng Finishing Total olu Requirement 3. Compute the manufacturing overhead cost that should be assigned to Job 510. Activity MOH Cost Materials handling Machine setup Insertion of parts Finishing Total Data Table rat tivity catic per ng per Total Budgeted Manufacturing Activity Overhead Cost Allocation Base Materials handling ..... $ 8,700 Number of parts Machine setup 4,650 Number of setups Insertion of parts ...... 49,300 Number of parts 75,600 Finishing .. Finishing direct labor hours $ 138,250 Total... ... per per ment 2 Activ handl Print Done setup of parts ivity catio More Info per per per Job 420 used 150 parts, required 2 setups, and consumed 100 finishing hours. Job 510 used 425 parts, required 4 setups, and consumed 350 finishing hours. per Print Done nt 2 activh

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