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Fletcher, 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
Fletcher, 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 2018 and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. A Requirements Data Table to the nearest cent.) 1. Compute the predetermined overhead allocation rate for each activity. 2. Compute the expected indirect manufacturing cost of each bumper. Print Done Total Budgeted Activity Cost Allocation Base Materials handling $ 15,000 Number of parts Machine setup 2,700 Number of setups Insertion of parts 40,000 Number of parts Finishing 87,000 Finishing direct labor hours $ 144,700 Total Fletcher expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 2,000 parts, require 5 setups, and consume 1,500 hours of finishing time
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