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Several years after reengineering its production process, Biltmore Corporation hired a new controller, Denise French (Click the icon to view additional information.) For the upcoming year, Biltmore's budgeted ABC manufacturing overhead allocation rates are as follows: E (Click the icon to view the additional data.) The number of parts is now a feasible allocation base because Biltmore recently installed a plantwide computer system. Biltmore produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) She developed an ABC system very similar to the one used by Biltmore's chief rival. Part of the reason French developed the ABC system was because Biltmore'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 Activity Cost Allocation Rate Activity Allocation Base Materials handling .... Number of parts Machine setup........ Number of setups Insertion of parts ..... Number of parts Finishing ... Finishing direct labor hours $3.00 per part $300.00 per setup $32.00 per part $58.00 per hour Data table Standard Deluxe 8.0 10.0 3.5 Parts per wheel 6.0 Setups per 1,000 wheels... 10.0 Finishing direct labor hours per wheel.... 1.5 Total direct labor hours per wheel...... 2.6 The company's managers expect to produce 1,000 units of each model during the year. 3.4 Requirements 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. Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Biltmore Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Total Budgeted Activity Cost Allocation Base Allocation Rate Indirect Cost 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 the decimals and cont perheel to the con Biltmore Corporation ABC Indirect Manufacturing Cost per Unit Cost Quantity of Cost Allocation Allocated Activity Activity Allocation Rate Base Used By: Cost Per Wheel Standard Deluxe Standard Deluxe Materials anding Machine setup Insertion of parts Finishing Total ABC allocated indirect cost