The company expects to produce 500 units of each model during the year Read the requirements son Company manufactures wheel rims. The controller expects the Rollowing ABC allocation rates for 2018: Click the icon to view the allocation rates.) Eason produces two wheel rim models: standard and deluxe. Expected data for 2018 are as follows: (Click the icon to view the expected data.) Requirement 1. Compute the total estimated Indirect manufacturing cost for 2018. Begin by selecting the formula to compute the total estimated overhead (OH) costs Total estimated (1) (2) overhead costs Now compute the total estimated indirect manufacturing cost for 2018 Total Estimated Indirect Manufacturing Cost Activity Materials handling Machine setup Insertion of parts Finishing Total estimated indirect manufacturing cost Requirement 2. Prior to 2018, Eason used a single plantwide overhead allocation rate system with direct labor hours as the allocation base. Compute the predetermined overhead allocation rate based on direct labor hours for 2018. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent. First, select the formula, and then enter the amounts to compute the allocation rate (3) (4) Allocation rate Use the single plantwide allocation rate to determine the indirect manufacturing cost per wheel rim for each model, to the nearest cent. Indirect manufacturing cost per rim: Standard model: Deluxe model Requirement 3. Compute the estimated ABC indirect manufacturing cost per unit of each model for 2018. Carry each cost to the nearest cent. Compute the costs per unit for the standard model first, then the deluxe model. (Carry the setup cost per rim to three decimal places. Round your fina answers to the nearest cent.) Allocated Mfg. Allocated Mfg. OH Cost Per Rim Activity OH Cost Per Rim Standard Deluxe Materials handling Machine setup Insertion of parts Finishing Total indirect cost per im 6: Data Table Activity Allocation Base Materials handling Number of parts Number of setups Predetermined Overhead Allocation Rate $4.00 per part 400.00 per setup 26.00 per part Machine setup Insertion of parts Number of parts Number of finishing hours Finishing 90.00 per hour 7: Data Table Standard Deluxe Parts per rim 4.0 7.0 Setups per 500 rims 18.0 18.0 1.0 5.5 Finishing hours per rim Total direct labor hours per rim 5.0 6.0 8: Requirements 1. Compute the total estimated indirect manufacturing cost for 2018. 2. Prior to 2018, Eason used a single plantwide overhead allocation rate system with direct labor hours as the allocation base. Compute the predetermined overhead allocation rate based on direct labor hours for 2018. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent. 3. Compute the estimated ABC indirect manufacturing cost per unit of each model for 2018. Carry each cost to the nearest cent. Total estimated qty of the allocation base (1) O O Actual overhead costs Actual qty of the allocation base used Predetermined overhead allocation rate OOOO O Total estimated qty of the allocation base (2) O O Actual overhead costs O Actual qty of the allocation base used O Predetermined overhead allocation rate O Estimated qty of the allocation base (3) O O Actual overhead costs O Actual qty of the allocation base used O Estimated overhead costs O Estimated qty of the allocation base (4) O O Actual overhead costs O Actual qty of the allocation base used O Estimated overhead costs
