The company expects to produce 500 units of each model during the year. Empire Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the icon to view the allocation rates.) Empire 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 Requirement 1. Compute the total estimated indirect manufacturing cost for 2018. Data Table - X Requirements Begin by selecting the formula to compute the total estimated overhead (OH) costs. Data Table Total estimated overhead costs Predetermined Overhead Allocation Rate Allocation Base Standard Deluxe Now compute the total estimated indirect manufacturing cost for 2018. Activity Materials handling Number of parts $ 6.0 Total Estimated Indirect Manufacturing Cost Parts per rim Setups per 500 rims Machine setup 1. Compute the total estimated indirect manufacturing cost for 2018. 2. Prior to 2018. Empire 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. Number of setups 12.0 8.00 per part 300.00 per setup 24.00 per part 30.00 per hour 8.0 12.0 8.5 Activity Insertion of parts Number of parts 8.0 Finishing hours per rim Total direct labor hours per rim Finishing Number of finishing hours 7.0 8.0 Materials handling Machine setup Insertion of parts Finishing Print Done Print Done Print Done Total estimated indirect manufacturing cost Requirement 2. Prior to 2018. Empire 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 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 final answers to the nearest cent.) Allocated Mfg Activity Allocated Mfg. OH Cost Per Rim Standard OH Cost Per Rim Deluxe Materials handling Machine setup Insertion of parts Finishing Total indirect cost per rim
