Project Description: BrGe E4.27A Steps to Perform: Siveral years after reengineering its production process, Dettling Corporation hired a new controller, Alana Metrgar. She developed an ABC system very similar to the one used by Dettling's chief rival. Part of the reason Metzgar developed the ABC system was because Dettling's profits had been declining even though the company had shifted its product mix toward the product that had appesred 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. for the upcoming year, Dettling's budgeted ABC manufacturing overhead allocation rates are as follows: The number of parts is now a feasible allocation base because Dotting recently installed a plantwide computer system. Dettling produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab or if you type the numbers in, you will be marked 1. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. copy/paste from the instructions tab or if you type the numbers in, you will be marked 12 wrong.) 3. Compute the company's traditional plantwide overhead rate. copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Plant overhead rate per direct labor hour Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Project Description: BrGe E4.27A Steps to Perform: Siveral years after reengineering its production process, Dettling Corporation hired a new controller, Alana Metrgar. She developed an ABC system very similar to the one used by Dettling's chief rival. Part of the reason Metzgar developed the ABC system was because Dettling's profits had been declining even though the company had shifted its product mix toward the product that had appesred 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. for the upcoming year, Dettling's budgeted ABC manufacturing overhead allocation rates are as follows: The number of parts is now a feasible allocation base because Dotting recently installed a plantwide computer system. Dettling produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab or if you type the numbers in, you will be marked 1. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. copy/paste from the instructions tab or if you type the numbers in, you will be marked 12 wrong.) 3. Compute the company's traditional plantwide overhead rate. copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Plant overhead rate per direct labor hour Use this rate to determine the manufacturing overhead cost per wheel under the traditional system
