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Fuller Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials
Fuller 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: Total Budgeted Manufacturing Overhead Allocation Base Activity Materials handling Cost $12,000 Number of parts 3,400 Number of setups 48,000 Number of parts Machine setup Insertion of parts 80,000 Finishing direct labor hours $143,400 Finishing Total Fuller Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use: Finishing Parts Setups Hours Consumed 3,000 10 2,000 Finishing Setups Parts Used Required Hours Consumed Job 420 200 2 130 Job 510 425 4 350 2. Compute the manufacturing overhead cost that should be assigned to Job 420. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Job 420 Manufacturing overhead allocation MOH assigned Activity Materials handling Machine setup Insertion of parts Finishing Total
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