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partial credit, E19-20 (similar to) Elkin Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018 : LOADING... (Click the icon

partial credit, E19-20 (similar to)

Elkin

Company manufactures wheel rims. The controller expects the following ABC allocation rates for

2018

:

LOADING...

(Click the icon to view the allocation rates.)

Elkin

produces two wheel rim models: standard and deluxe. Expected data for

2018

are as follows:

LOADING...

Activity

Allocation Base

Predetermined Overhead Allocation Rate

Materials handling

Number of parts

$2.00 per part

Machine setup

Number of setups

300.00 per setup

Insertion of parts

Number of parts

25.00 per part

Finishing

Number of finishing hours

70.00 per hour

(Click the icon to view the expected data.)

Standard

Deluxe

Parts per rim

5.0

8.0

Setups per 500 rims

12.0

12.0

Finishing hours per rim

2.0

2.5

Total direct labor hours per rim

3.0

4.0

Compute the total estimated indirect manufacturing cost for

2018

.

2.

Prior to

2018

,

Elkin

used a single plantwide overhead allocation rate system with direct labor hours as the allocation base. Compute the predetermined overhead allocation rate based on direct labor hours for

2018

.

Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent.

3.

Compute the estimated ABC indirect manufacturing cost per unit of each model for

2018

.

Carry each cost to the nearest cent.

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