Several years after reengineering its production process, Biltmore Corporation hired a new controller, Tammy English. For the upcoming year, Biltmore's budgeted ABC manufacturing overhead allocation rates are as follows:

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:

Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year.

Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC.

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.

Activity Allocation Base Materials handling. .... Number of parts Machine setup........ Number of setups Insertion of parts...... Number of parts Finishing ............ Finishing direct labor hours Activity Cost Allocation Rate $ 4.50 per part $ 325.00 per setup $ 31,00 per part $ 51.00 per hour 20.0 Standard Deluxe Parts per wheel........... 4.0 6.0 Setups per .1,000 wheels............... 20.0 Finishing direct.labor hours per wheel..... 1.0 3.0 Total direct labor. hours per wheel ........ 3.8 The company's managers expect to produce 1,000 units of each model during the year. Activity Materials handling Machine setups Budgeted Quantity of Cost Allocation Base 18,000 6,500 124,000 51,000| Activity Cost Allocation Rate 27,000 6,500 186,000 153,000 Total Budgeted Indirect Cost 45,000 13,000 310,000 204,000 572,000 Insertion of parts Finishing Total budgeted indirect cost Activity Allocation Rate Base Used By: Standard Deluxe Cost Per Wheel Standard Deluxe Materials handling Machine setup Insertion of parts Finishing Total ABC allocated indirect cost = 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 Deluxe