Several years after reengineering its production process, King Corporation hired a new controller, Rachael Johnson. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because King recently installed a plantwide computer system. King 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, King'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.) King Corporation x Data Table - X Data Table i Requirements Standard Deluxe 6.0 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. Parts per wheel 4.0 Setups per 1,000 wheels 20.0 20.0 Finishing direct labor hours per wheel 1.0 3.0 Total direct labor hours per wheel......... 2.7 3.8 The company's managers expect to produce 1,000 units of each model during the year. Activity Cost Activity Allocation Base Allocation Rate Materials handling .... Number of parts $ 4.50 per part Machine setup Number of setups $ 325.00 per setup Insertion of parts Number of parts $ 31.00 per part Finishing Finishing direct labor hours $ 51.00 per hour Print Done Print Done Print Done Several years after reengineering its production process, King Corporation hired a new controller, Rachael Johnson. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because King recently installed a plantwide computer system. King 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, King'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.) King Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Cost Allocation Base Allocation Rate Total Budgeted Indirect Cost Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost
