Franklin Company uses ABC to account for its chrome whool manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows FF: (Click the icon to view the budgeted costs and activity bases) Franklin Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2.600 parts, require 15 setups, and consume 1.600 hours of finishing time Job 420 used 300 parts, required 2 setups, and consumed 130 finishing hours Job 510 used 425 parts, required 4 setups, and consumed 340 finishing hours Read the requirements Requirement 1. Compute the cost allocation rate for each activity. First identify the formula then compute the rate for each activity Total activity overhead (est) / Total activity allocation base Activity cost allocation rate per part Mat, handling i Requirements 1. Compute the cost allocation rate for each activity 2. Compute the manufacturing overhead cost that should be assigned to Job 420 3. Compute the manufacturing overhead cost that should be assigned to Job 510 Total Budgete Manufacturing Overhead Cost Allocation Base 13.000 Activity Materials handling Machine setup. Insertion of parts Finishing Number of parts Number of setups Number of parts 33 800 56,000 Finishing direct labor hours $ 108,500 Total