Question
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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