Several years after reengineering its production process, Zeke Corporation hired a new controller, Mandy Miller. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because Zeke recently installed a plantwide computer system. Zeke 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, Zeke's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Read the requirements. A - More Info x Data Table Data Table She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Miller 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. Activity Cost Activity Allocation Base Allocation Rate Materials handling .... Number of parts $ 4.00 per part Machine setup ....... Number of setups $ 450.00 per setup Insertion of parts ..... Number of parts $ 26.00 per part Finishing ............ Finishing direct labor hours $ 50.00 per hour Standard Deluxe Parts per wheel.................. 4.0 6.0 Setups per 1,000 wheels .................. 20.0 Finishing direct labor hours per wheel...... 1.1 Total direct labor hours per wheel ........ 2.6 3.2 The company's managers expect to produce 1,000 units of each model during the year. Print Done Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Zeke 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 Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC. (Round the cost allocation base to three decimals and cost per wheel to the nearest cent.) Zeke Corporation ABC Indirect Manufacturing Cost per Unit Cost Quantity of Cost Allocation Allocation Rate Base Used By: Standard Deluxe Activity Allocated Activity Cost Per Wheel Standard Deluxe Materials handling Machine setup Insertion of parts Finishing Total ABC allocated indirect cost 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. (Round your answer to the nearest cent.) = 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