More info She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Johnson 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. Data table Parts per wheel... Setups per 1,000 wheels Data table Print Done Activity Allocation Base Materials handling.... Number of parts Activity Cost Allocation Rate $5.50 per part Machine setup ... Number of setups $325.00 per setup Insertion of parts Number of parts $24.00 per part Finishing Finishing direct labor hours $57.00 per hour Print Done Finishing direct labor hours per wheel Total direct labor hours per wheel....... Standard Deluxe 6.0 8.0 20.0 20.0 1.0 3.0 2.6 3.4 The company's managers expect to produce 1,000 units of each model during the year. Requirements Print Done 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Print Done - X Several years after reengineering its production process, Zeke Corporation hired a new controller, Rachael Johnson. (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 decimal places.) Zeke Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate Total Budgeted Indirect Cost Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost 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 Activity Materials handling Machine setup Insertion of parts Finishing Total ABC allocated indirect cost Cost Allocation Rate Quantity of Cost Allocation Allocated Activity Base Used By: Standard Deluxe Standard Cost Per Wheel Deluxe 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. 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.) = Plantwide overhead rate per DL hour Now use the plantwide overhead rate to determine the manufacturing overhead cost per wheel. (Round your answers to the nearest cent.) Standard Deluxe x x Manufacturing overhead