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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:
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: Frederick Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,300 parts, require 20 setups, and consume 2,100 hours of finishing time. (Click the icon for completed job data.) Requirement 1. Compute the cost allocation rate for each activity. Activity cost allocation rate Materials handling (per part) Machine setup (per setup) Insertion (per part) Finishing (per hour) Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. The manufacturing overhead cost that should be assigned to Job 420 is Requirement 3. Compute the manufacturing overhead cost that should be assigned to Job 510. The manufacturing overhead cost that should be assigned to Job 510 is
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