The company expects to produce 500 units of each model during the year. Edmund Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the icon to view the allocation rates.) Edmund produces two wheel rim models: standard and deluxe. Expected data for 2018 are as follows: (Click the icon to view the expected data.) Read the requirements. Data Table Requirement 1. Compute the total estimated indirect manufacturing cost for 2018. i Data Table Begin by selecting the formula to compute the total estimated overhead (OH) costs. Total estimated overhead costs Predetermined overhead allocation rate % Total estimated qty of the allocation base = Standard Deluxe Predetermined Overhead Allocation Rate Activity Allocation Base Parts per rim 2.0 Now compute the total estimated indirect manufacturing cost for 2018. 6.0 12.0 Materials handling $ Machine setup Setups per 500 rims Finishing hours per rim Total direct labor hours per rim Total Estimated 12.0 4.0 7.0 Number of parts Number of setups Number of parts Number of finishing hours 8.00 per part 200.00 per setup 24.00 per part Activity Indirect Manufacturing Cost Insertion of parts Finishing Materials handling 32.000 Machine setup Print Done Print Done Insertion of parts Finishing 4,800 98,000 210,000 342,800 Total estimated indirect manufacturing cost Requirement 2. Prior to 2018, Edmund 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. i Requirements - X 1 - Allocation rate 1. Compute the total estimated indirect manufacturing cost for 2018. 2. Prior to 2018, Edmund 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. The company expects to produce 500 units of each model during the year. Edmund Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the icon to view the allocation rates.) Edmund produces two wheel rim models: standard and deluxe. Expected data for 2018 are as follows: (Click the icon to view the expected data.) Read the requirements. Data Table Requirement 1. Compute the total estimated indirect manufacturing cost for 2018. i Data Table Begin by selecting the formula to compute the total estimated overhead (OH) costs. Total estimated overhead costs Predetermined overhead allocation rate % Total estimated qty of the allocation base = Standard Deluxe Predetermined Overhead Allocation Rate Activity Allocation Base Parts per rim 2.0 Now compute the total estimated indirect manufacturing cost for 2018. 6.0 12.0 Materials handling $ Machine setup Setups per 500 rims Finishing hours per rim Total direct labor hours per rim Total Estimated 12.0 4.0 7.0 Number of parts Number of setups Number of parts Number of finishing hours 8.00 per part 200.00 per setup 24.00 per part Activity Indirect Manufacturing Cost Insertion of parts Finishing Materials handling 32.000 Machine setup Print Done Print Done Insertion of parts Finishing 4,800 98,000 210,000 342,800 Total estimated indirect manufacturing cost Requirement 2. Prior to 2018, Edmund 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. i Requirements - X 1 - Allocation rate 1. Compute the total estimated indirect manufacturing cost for 2018. 2. Prior to 2018, Edmund 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
