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Frederick Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials

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Frederick Company uses ABC to account for its chrome wheel 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: (Click the icon to view the budgeted costs and activity bases) Frederick Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2.750 parts, require 15 setups, and consume 1,700 hours of finishing time. Job 420 used 250 parts, required 3 setups, and consumed 140 finishing hours. Job 510 used 450 parts, required 5 setups, and consumed 300 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 Activity cost allocation rate 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. Print Done Frederick Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified lour 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: (Click the icon to view the budgeted costs and activity bases.) Frederick Company expects to produce 1.000 chrome wheels during the year. The wheels are expected to use 2,750 parts, require 15 setups, and consume 1,700 hours of finishing time. Job 420 used 250 parts, required 3 setups, and consumed 140 finishing hours. Job 510 used 450 parts, required 5 setups, and consumed 300 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 Activity cost allocation rate 0 Data Table Activity Allocation Base Materials handling... Machine setup Insertion of parts .... Total Budgeted Manufacturing Overhead Cost $ 11,000 3,600 44,000 76,500 $ 135, 100 Number of parts Number of setups Number of parts Finishing direct labor hours Finishing Total .. Print Done

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