Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Farrington Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials

image text in transcribed

image text in transcribed

image text in transcribed

Farrington Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: (Click the icon to view the data.) Farrington Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 setups, and consume 2,000 hours of finishing time. (Click the icon for completed job data.) Read the requirements. .. Activity cost Total activity overhead (est.) allocation rate Total activity allocation base 3,000 Mat. handling $ 12,000 = $ 4 per part Mach setup $ 3,400 10 = $ 340 per setup Insertion $ 48,000 3,000 $ 16 per part Finishing $ 80,000 2,000 = $ 40 per hour Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. Activity MOH Cost Materials handling Machine setup Insertion of parts Finishing Total - Data table Total Budgeted Manufacturing Overhead Cost Activity Allocation Base $ Materials handling Machine setup Insertion of parts 12,000 Number of parts 3,400 Number of setups 48,000 Number of parts 80,000 Finishing direct labor hours 143,400 Finishing . $ Total Print Done x More info Job 420 used 100 parts, required 3 setups, and consumed 150 finishing hours. Job 510 used 425 parts, required 6 setups, and consumed 350 finishing hours. Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Audit Control And Security

Authors: Robert R. Moeller

1st Edition

0471406767, 9780471406761

More Books

Students also viewed these Accounting questions