= Homework: Chapter 4 Homework Question 1, S4-6 (similar to) Part 5 of 5 HW Score: 90.18%, 22.55 of 25 points Points: 1.47 of 2 Save Olivo Industries, a small, family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: (Click the icon to view activities, total costs, and cost drivers.) (Click the icon for additional information.) Read the requirements. More info 1. Compute the activity cost allocation rates for the year. (Round your answers to the nearest whole dollar.) First determine the formula to compute the allocation rate for the activity-based cost rate, then calculate the rate for each activity. Total manufacturing overhead Est. total use of cost driver = Activity cost allocation rate Machine setups Machining $ 156,350 2,950 = $ 53 per setup $ 784,000 4,900 $ 160 per machine hour Quality control $ 215,000 4,300 = $ 50 per QC test 2. Complete the following job cost record for Job 405. Job Cost Record JOB 405 Direct material Manufacturing Costs During May, Ron and Arabella Olivo machined and assembled Job 405. Ron worked a total of 9 hours on the job, while Arabella worked 5 hours on the job. Ron is paid a $25 per hour wage rate, while Arabella is paid $30 per hour because of her additional experience level. Direct materials requisitioned for Job 405 totaled $1,300. The following additional information was collected on Job 405: The job required 1 machine setup, 5 machine hours, and 3 quality control tests. Data table Print Done Direct labor Manufacturing overhead Total job cost.......... Activity Estimated Total Manufacturing Overhead Costs Estimated Total Usage Machine setup... $ of Cost Driver 156,350 2,950 setups Machining $ Quality control .... $ 784,000 4,900 machine hours 215,000 4,300 tests run Help me solve this Video Get more help Check answ