Question Help 0 Data Table i More Info Burke recently installed a plantwide computer xe. Budgeted data for the upcoming year are as Activity Cost She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason Adams developed the ABC system was because Burke'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. Activity Allocation Base Allocation Rate Materials handling Number of parts $ 4.00 per part Machine setup ....... Number of setups $ 450.00 per setup Insertion of parts ..... Number of parts $ 26.00 per part Finishing ............ Finishing direct labor hours $ 50.00 per hour Print Done Activity Cost Allocation Base Allocation Rate i Data Table Materials handling Machine setups Insertion of parts Standard Deluxe Finishing Parts per wheel 4.0 6.0 Total budgeted indirect cost Requirement 2. Compute the manufacturing overhead cost per Wheel of each mode Setups per 1,000 wheels 20.0 20.0 Finishing direct labor hours per wheel ..... 1.1 2.4 Total direct labor hours per wheel ........ 2.6 3.2 The company's managers expect to produce 1,000 units of each model during the year. Burke Corporation Choose from any list or enter any number in the input fields and then continue ? Print Done Several years after reengineering its production process, Burke Corporation hired a new controller, Ashley Adams. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because Burke recently installed a plantwide computer system. Burke produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) For the upcoming year, Burke's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Read the requirements. Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Burke 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 three decimals and cost per wheel to the nearest cent.) Burke 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 handling Machine setup Insertion of parts Finishing Total ABC allocated indirect cost Several years after reengineering its production process, Burke Corporation hired a new controller, Ashley Adams Click the icon to view additional information.) For the upcoming year, Burke's budgeted ABC manufacturing overhead allocation rates are as follows: B (Click the icon to view the additional data.) The number of parts is now a feasible allocation base because Burke recently installed a plantwide computer system. Burke produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) Read the requirements. Machine setup Insertion of parts Finishing Total ABC allocated Indirect cost Requirement 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Begin by identifying the formula to compute the current plantwide manufacturing overhead rate, then compute the rate. (Round your answer to the nearest cent.) Plantwide overhead rate per DL hour Now use the plantwide overhead rate to determine the manufacturing overhead cost per wheel. (Round your answers to the nearest cent.) Manufacturing overhead Standard X Deluxe x Choose from any list or enter any number in the input fields and then continue to the next
