Question Help E4-27A (similar to) Several years after reengineering its production process, Kane Corporation hired a new controllier, Ashley Adams (Click the icon to view additional information) For the upcoming year, Kane's budgeted ABC manufacturing overhead allocation rates are as follows: H (Click the icon to view the additional data) The number of parts is now a feasible allocation base because Kane recently installed a plantwide computer system. Kane 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 Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate Total Budgeted Indirect Cost Activity Materials handling Machine setups Insertion of parts Finishing Budgeted data for the upcoming year are as i More Info She developed an ABC system very similar to the one used by Kane's chief rival. Part of the reason Adams developed the ABC system was because Kane'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. Print Done Updates Not Instal Some updates could automatically Chapter 4 - Homework work Points 20 Submitting an external tool Available after Jan 18 at 12am yer apter 4 - Homework 5 of 7 (3 complete) HW Score: production process, Kane Corporation hired a new The number of parts is now a feasible allocation base because K nilanhaide.comuter.com. Kao produce wheel models: S bllows X al informatio 1 Data Table geted ABC ational data) Activity Cost Allocation Rate Bgeted Qua ost Allocatio Activity Allocation Base Materials handling .... Number of parts Machine setup Number of setups Insertion of parts ... Number of parts Finishing Finishing direct labor hours $4.50 per part $325.00 per setup $31.00 per part $51.00 per hour Print Done ds and then Ch Clear All MacBook Pro stion process, Kane Corporado uces two whee fe as follows: data.) ation.) * Data Table BC manufa ata.) Standard Deluxe 6.0 Quantity a cation Bas 20.0 3.0 . Parts per wheel ... 4.0 Setups per 1,000 wheels 20.0 Finishing direct labor hours per wheel 1.0 Total direct labor hours per wheel 2.7 The company's managers expect to produce 1,000 units of each model during the year. 3.8 M. Print Done then click 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. Print Done