File Audiave Samago Be F427A start Saved Home Insert Page Layout Formulas Data Review View Help X D P Search (Alt-Q) -12 -A A Wap Test General BIVA Merge & Center $ %2 16 Number Unde HOM A fx C D E Activity-Based Costing, Lean Operations, and the Costs of Quality Use ABC to allocate manufacturing overhead Several years after reengineering its production process, Dettling Corporation hired a new controller, Alana Metzgar. She developed an ABC system very similar to the one used by Dettling's chief rival. Part of the reason Metzgar developed the ABC system was because Dettling's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system, Before adopting the new ABC system, the company 4 had used a plantwide overhead rate based on direct labor hours that was developed years ago. For the upcoming year, Dettling's budgeted ABC manufacturing overhead allocation rates are as follows Activity 9 Materials handling 10 Machine setup 11 Insertion of parts 12 Finishing 13 Allocation Base Number of parts Number of setups Number of parts Finishing direct labor hours S Activity Cost Allocation Rate 4.50 per part $325.00 per setup $ 31.00 per part 5 51.00 per hour The number of parts is now a feasible allocation base because Dettling recently installed a plantwide computer system. Dettling produces two wheel models: Standard and Deluxe. Budgeted 14 data for the upcoming year are as follows: 15 Standard Delive Unite INSTRUCTIONS ENTERANSWERS G H Conditional Format as Formatting Table Styles