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Farrington, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine set of
Farrington, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine set 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. Machine setup Insertion of parts Finishing $ $ Job 86: Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs ges 4,500 40,000 93,000 Get more help - 5 1,000 2,000 Predetermined OH allocation rate LEER Requirement 2. Job 86 required the production of 160 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Begin by selecting the formula to allocate overhead (OH) costs. Expected qty of the allocation base used X Data table Activity Materials handling Machine setup Insertion of parts Finishing $ Allocated mfg overhead costs Job 86 required the production of 160 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. (Round all amounts to the nearest cent.) Allocated Mfg. OH Cost $ $ $ 900.00 40.00 46.50 Total Budgeted Cost Allocation Base 16,000 Number of parts 4,500 Number of setups 40,000 Number of parts 93,000 Finishing direct labor hours $ 153,500 Total Farrington expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 1,000 parts, require 5 setups, and consume 2,000 hours of finishing time. - X ar all Check an
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