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Frederick, 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
Frederick, 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: E (Click the icon to view the budgeted costs and activity bases.) Read the requirements ... Estimated overhead costs . allocation rate Estimated qty of the allocation base 1,000 Materials handling $ 4,000 $ 4.00 Machine setup $ 2,600 10 = $ 260.00 Insertion of parts $ 51,000 1,000 = $ 51.00 Finishing $ 81,000 1,000 81.00 Requirement 2. Job 86 required the production of 110 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Begin by selecting the formula to allocate overhead (OH) costs. Expected qty of the allocation base used Predetermined OH allocation rate Allocated mfg. overhead costs Job 86 required the production of 110 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 Machine setup Insertion of parts Finishing Total mfg. OH costs
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