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 the year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. C 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. (Round your answers to the nearest cent.) Estimated overhead costs Materials handling Machine setup $ 6,000 $ 3,000 Insertion of parts Finishing $ 40,000 84,000 Predetermined OH Estimated qty of the allocation base = 1,000 = $ allocation rate 6.00 5 = $ 600.00 1,000 3,000 = $ 40.00 = $ 28.00 Requirement 2. Job 86 required the production of 150 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Begin by selecting the formula to allocate overhead (OH) costs. Predetermined OH allocation rate x Expected qty of the allocation base used = Allocated mfg. overhead costs Job 86 required the production of 150 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. (Round all amounts to the nearest cent.) Job 86: Allocated Mfg. OH Cost Materials handling 40 20 Machine setup Insertion of parts 267 560 Finishing Total mfg. OH costs 887 Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Job 86 required the production of 150 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Print Done Data table Activity Total Budgeted Cost Materials handling Machine setup $ Allocation Base 6,000 Number of parts 3,000 Number of setups Insertion of parts Finishing $ 133,000 Total 40,000 Number of parts 84,000 Finishing direct labor hours Fletcher expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 1,000 parts, require 5 setups, and consume 3,000 hours of finishing time. Print Done