Several years after reengineering its productionprocess, Hartford Corp. hired a newcontroller, GeorgiaTaylor. She developed an ABC system very similar to the one used by Hartford's chiefrival, Coldside. Part of the reason Taylor developed the ABC system was that Hartford'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 ABCsystem, Hartford had used a plantwide overhead rate based on direct labour hours that was developed years ago.

For the upcomingyear, Hartford's budgeted ABC manufacturing overhead allocation rates are asfollows:

The number of parts is now a feasible allocation base because Hartford recently purchasedbar-coding technology. Hartford produces two wheelmodels: Standard and Deluxe. Budgeted data for the upcoming year are asfollows: