Fill out each of the tables Several years after reengineering its production process, Zippy Corporation hired a new controller, Denise French.

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The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the

Zippy Corporation

Total Budgeted Indirect Manufacturing Costs

$\backslash$table$[[$Activity$,\backslash$table$[[$Budgeted Quantity of Activity Cost$],[$Cost Allocation Base Allocation Rate Budgeted$],[$Indirect Cost$]],],[$Materials handling,,$],[$Machine setups,,$],[$Insertion of parts,,$],[$Finishing$,,],[$Total budgeted indirect cost,,$]]$

Requirement $2.$ Compute the manufacturing overhead cost per wheel of each model using ABC. $($Round the cost allocation base to three decimals and cost per wheel to the nearest cent.$)$

Zippy Corporation

ABC Indirect Manufacturing Cost per Unit

$\backslash$table$[[$Activity$,\backslash$table$[[$Cost$],[$Allocation Rate$]],\backslash$table$[[$Quantity of Cost Allocation$],[$Base Used By:$]],\backslash$table$[[$Allocated Activity$],[$Cost Per Wheel$]]],[$Standard$,$Deluxe,Standard,Deluxe$],[$Materials handling$],[$Machine setup$],[$Insertion of parts$],[$Finishing$,,,,)=(,],[$Total ABC allocated indirect cost,,,,,$]]$

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She developed an ABC system very similar to the one used by Zippy's chief rival. Part of the reason French developed the ABC system was because Zippy'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 had used a plantwide overhead rate based on direct labor hours that was developed years ago.

For the upcoming year, Zippy's budgeted ABC manufacturing overhead allocation rates are as follows:

$\backslash$table$[[$Allocation Base,$\backslash$table$[[$Activity Cost$],[$Allocation Rate$]]],[$Materials handling dots. Number of parts,$$5\mathrm{.}50$ per part$],[$Machine setup dots... Number of setups,$$325\mathrm{.}00$ per setup$],[$Insertion of parts dots.. Number of parts,$$27\mathrm{.}00$ per part$],[$Finishing dots..... $.$ Finishing direct labor hours,$$52\mathrm{.}00$ per hour$]]$

Additional data

$\backslash$table$[[,$Standard,Deluxe$],[$Parts per wheel. $..,8\mathrm{.}0,10\mathrm{.}0],[$Setups per $1,000$ wheels. $..,20\mathrm{.}0,20\mathrm{.}0],[$Finishing direct labor hours per wheel $.,1\mathrm{.}5,2\mathrm{.}5],[$Total direct labor hours per wheel. $.........,2\mathrm{.}7,3\mathrm{.}8]]$

Requirement $3.$ Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.

Begin by identifying the formula to compute the current plantwide manufacturing overhead rate, then compute the rate. $($Round your answer to the nearest cent.$)$

$\backslash$table$[[,=,$Plantwide overhead rate$],[,=1,$per DL hour$]]$

Now use the plantwide overhead rate to determine the manufacturing overhead cost per wheel. $($Round your answers to the nearest cent.$)$

$\backslash$table$[[,]x,$I Manufacturing overhead$],[$Standard$,\sqrt[\phantom{2}]{x},=$