i Requirements i Budgeted costs and activity bases 1. Compute the cost allocation rate for each activity. 2. Compute the MOH cost that should be assigned to Job 420. 3. Compute the MOH cost that should be assigned to Job 510. Total Budgeted Manufacturing Activity Overhead Cost Allocation Base Print Done $ 12,000 Materials handling Machine set-up Insertion of parts Number of parts Number of set-ups 3,400 Activity Number of parts 48,000 80,000 overhead rate Finishing Finishing direct labour hours 1 part $ 143,400 Total = | setup Baddeck Inc. 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 set-up, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Baddeck Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 2,000 hours of finishing time. Job 420 used 325 parts, required 5 set-ups, and consumed 130 finishing hours. Job 510 used 550 parts, required 6 set-ups, and consumed 380 finishing hours. Requirements Requirement 1. Compute the cost allocation rate for each activity. First, identify the formula, and then compute the rate for each activity. Activity overhead rate Mat. handling = 1 part Machine setup = | setup Insertion 1 part Finishing 1 hour