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Several years after reengineering its production process, Zeke Corporation hired a new controller. The number of parts is now a feasible allocation base because Zeke
Several years after reengineering its production process, Zeke Corporation hired a new controller. The number of parts is now a feasible allocation base because Zeke recently installed a Christine Erickson. plantwide computer system. Zeke produces two wheel models: Standard and Deluxe. (Click the icon to view additional information.) Budgeted data for the upcorring year are as follows: For the upcoming year, Zeke's budgeted ABC manufacturing overhead allocation rates are as (Click the icon to vlew the additional data.) follows: (Click the icon to view the additional data.) Requirement 1. Compute the total budgeted manufacturing overheead cost for the upcoming year. (Enter the rates to two decimal places.) More info She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Erickson developed the ABC system was because Zeke'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. Data table Data table 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
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