Farrington, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling. machine setup, insertion of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. Materials handling Machine setup Insertion of parts Finishing $ $ $ $ Estimated overhead costs 20,000 3,600 54,000 72,000 Estimated qty of the allocation base 4,000 5 4,000 1,000 Predetermined un $ $ $ S allocation rate 5.00 720.00 13.50 72.00 Requirement 2. Job 86 required the production of 190 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Begin by selecting the formula to allocate overhead (OH) costs. Predetermined OH allocation rate Expected qty of the allocation base used Allocated mfg. overhead costs Job 86 required the production of 190 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. (Round all amounts to the nearest cent.) Job 86: Allocated Mfg. OH Cost Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs

Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Job 86 required the production of 190 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86 . Paod the teouirnents. Begin by selecting the formula to afocale overheod (OH)cos co. Data table Farrington expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 5 setups, and consume 1,000 hours of finishing time