Several years after reengineering its production process, Biltmore Corporation hired a new controller, Jane Smith. Click the icon to view additional information.) For the upcoming year, Biltmore's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Budgeted Quantity of Activity Cost Total Budgeted Activity Cost Allocation Base Allocation Rate Indirect Cost Materials handling 18,000 $ 4.00 S 72,000 Machine setups 40 375.00 15,000 Insertion of parts 18,000 28.00 504,000 Finishing 5,500 54.00 297,000 $ 888,000 Total budgeted indirect cost Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC. (Round the cost allocation base to 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 handling 4.00 Machine setup Insertion of parts 28.00 Finishing 54.00 2.0 3.5 108.00 Total ABC allocated indirect cost Enter any number in the edit fields and then click Check Answer 2 pemaining 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) Read the requirements i Data Table ree decimals and cost per wheel to the nearest cent.) Standard Deluxe Parts per wheel 8.0 10.0 Setups per 1,000 wheels... 20.0 20.0 Finishing direct labor hours per wheel 20 35 Total direct labor hours per wheel.... 2.6 3.4 The company's managers expect to produce 1.000 units of each model during the year Print Done More Info She developed an ABC system very similar to the one used by Biltmore's chief rival. Part of the reason Smith 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 Check Answer Clear All Print Done