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 Data Table Requirement 1. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. Activity Total Budgeted Cost Allocation Base Predetermined OH allocation rate Materials handling Machine setup Materials handling $ 4,000 Number of parts Machine setup 4,800 Number of setups Insertion of parts 54,000 Number of parts Finishing 75,000 Finishing direct labor hours S 137,800 Total Farrington expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,500 hours of finishing Insertion of parts - Finishing - time. 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. X Allocated mfg. overhead costs Requirements Print Done Job 86 required the production of 190 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Job 86: Allocated Mfg. OH Cost Materials handling Machine setup 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. Insertion of parts Finishing Total mfg. OH costs Print Done