ork Score: 0.88 of 1 pt 6 of 7 (7 complete) % EM4-21 (similar to) Empire Company manufactures wheel rims. The controller budgeted ABC allocation rates for 2024 Empire produces two wheel Controller Milton Bonde rim models standard and deluxe Budgeted data for 2024 are as follows conducted (Click the icon to view the 2024 allocation rates and budgeted data) Click the icon to vie (Click the icon to view additional information, budgeted information and the deluxe unit cost calculation) Would implementing the Begin by selecting the formula to allocate overhead (OH) costs. Then enter the amounts to calculate the revised finishing activity cost per rim Allocated mig overhead costs Q cion rates for 2024. Empire produces two wheel Controller Milton Bender is surprised by the in conducted del 0 Data Table am Activity Materials handling Machine setup Insertion of parts Finishing Allocation Base Number of parts Number of setups Number of parts Number of finishing hours Predetermined Overhead Allocation Rate $5.00 per part 600.00 per setup 22.00 per part 70.00 per hour Standard Deluxe 6.0 9.0 Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim 12.0 120 5.0 6.5 70 80 Print Done ck Check Answer. st of the Ted AB follows d data Data Table - ch) mation pn enable Then od In 2025, Empire's managers used the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity based costing In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025 Standard Deluxe Sales price s 900 00 $ 1,040.00 Direct materials 34 00 51.00 Direct labor 48.00 54 00 Predetermined Allocated activity Quantity of allocation base used overhead allocation cost per im rate (Deluxe) 90 $ 5.00 - $ 45.00 ABC cost per unit Materials handling Machine setups Insertion of parts Finishing direct labor hours X $ 600.00 = 14.40 0.024 90 * $ 22 00 = 198.00 455 00 65 x $ 70.00 Total S 712.40 ds and the Print Done Clear All the revised finishing activity cost nerrim More Info Market research shows that for the deluxe rim to provide a reasonable profit, Empire will have to meet a target manufacturing cost of 772.00 per rim. A value engineering study by Empire's employees suggests that modifications to the finishing process could cut finishing cost from $70.00 to $60.00 per hour and reduce the finishing direct labor hours per deluxe rim from 6.5 hours to 60 hours Direct materials would remain unchanged at $51 00 per rim, as would direct labor at $54.00 per rim. The materials handling, machine setup, and insertion of parts activity costs also would remain the same Print Done