Several years after reengineering its production process, Burke Corporation hired a new controller, Barb Joe. (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: E: (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.) Requirements Burke Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Cost Allocation Base Allocation Rate Total Budgeted Indirect Cost Activity 18000 3 Materials handling Machine setups Insertion of parts 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. 40 375 18000 28 Finishing 5500 55 Print Done Total budgeted indirect cost Enter any number in the edit fields and then click Check Answer. ? X i Data Table 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 $3.00 per part $375.00 per setup $28.00 per part $55.00 per hour Print Done A More Info She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason Joe 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. Print Done i - X Data Table Standard Deluxe Parts per wheel.... 4.0 6.0 Setups per 1,000 wheels... 20.0 20.0 Finishing direct labor hours per wheel.... 1.2 2.6 Total direct labor hours per wheel.... 2.1 3.9 The company's managers expect to produce 1,000 units of each model during the year. Print Done