Materials Handling: 6000

Machine Setup: 3600

Insertion of parts: 63000

Finishing: 93,000

Total: 165600

Company expects to produce 500 units during yr. Chairs expectedto use 1000 parts. 10 setups. 1000 hrs of fiinishing time.

Requirement 1. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.) Predetermined Estimated overhead costs Estimated qty of the allocation base allocation rate 6000 Materials handling Machine setup Insertion of parts Finishing 3600 63000 93000 Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.) Allocated Mfg. OH Cost Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs Number of bumpers Mfg. OH cost per bumper