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I just need the bottom part but wanted to give you everything I had already done incase that helped, thank you Several years after reengineering
I just need the bottom part but wanted to give you everything I had already done incase that helped, thank you
Several years after reengineering its production process, Zeke Corporation hired a new controller, Barb Joe. (Click the icon to view additional information.) For the upcoming year, Zeke's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two Zeke Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Total Budgeted Activity Cost Allocation Base Allocation Rate Indirect Cost Materials handling 10,000 $ 4.50 $ 45,000 40 325.00 13,000 Machine setups Insertion of parts 10,000 31.00 310,000 Finishing 4,000 51.00 204,000 $ 572,000 Total budgeted indirect cost i More Info She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Joe developed the ABC system was because Zeke's profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, the company had used a plantwide overhead rate based on direct labor hours that was developed years ago. Print Done The number of parts is now a feasible allocation base because Zeke recently installed a plantwide computer system. Zeke produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: |(Click the icon to view the additional data.) Read the requirements. i X Data Table Standard Deluxe 6.0 20.0 3.0 Parts per wheel 4.0 Setups per 1,000 wheels 20.0 Finishing direct labor hours per wheel 1.0 Total direct labor hours per wheel 2.7 The company's managers expect to produce 1,000 units of each model during the year. 3.8 Print Done i X Data Table Activity Cost Allocation Rate Allocation Base Activity Materials handling Machine setup Insertion of parts Number of parts Number of setups Number of parts $4.50 per part $325.00 per setup $31.00 per part Finishing Finishing direct labor hours $51.00 per hour Print Done Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC. (Round the cost allocation base to three decimals and cost per wheel to the nearest cent.) Zeke Corporation ABC Indirect Manufacturing Cost per Unit Cost Quantity of Cost Allocation Allocated Activity Activity Allocation Rate Base Used By: Cost Per Wheel Standard Deluxe Standard Deluxe 4.50 4 6 $ 18.00 27.00 Materials handling Machine setup Insertion of parts 325.00 0.020 0.020 6.50 6.50 31.00 4 6 124.00 186.00 51.00 Finishing 1.0 3.0 51.00 153.00 199.50 $ 372.50 Total ABC allocated indirect cost Requirement 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Begin by identifying the formula to compute the current plantwide manufacturing overhead rate, then compute the rate. (Round your answer to the nearest cent.) Total budgeted manufacturing overhead Total budgeted direct labor hours Plantwide overhead rate $ 572,000 6,500 $ 88.00 per DL hour Now use the plantwide overhead rate to determine the manufacturing overhead cost per wheel. (Round your answers to the nearest cent.) Direct labor hours Manufacturing overhead Standard 2.70 Deluxe Direct labor costs 3.80 Direct labor hours r in the input fields and then click Check Answer. Direct materials Choose from Machine hours All parts shc Plantwide overhead rate Clear AllStep by Step Solution
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