The number of parts is now a feasible allocation base because Trudell recently installed a plantwide computer system. Trudell produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: Data table Standard Deluxe Parts per wheel 8.0 10.0 Setups per 1,000 wheels... 20.0 20.0 Finishing direct labor hours per wheel.... 1.5 2.5 Total direct labor hours per wheel... 2.7 3.8 The company's managers expect to produce 1,000 units of each model during the year. Requirements 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Print Done - Several years after reengineering its production process, Trudell Corporation hired a new controller, Denise French. (Click the icon to view additional information.) For the upcoming year, Trudell's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) More info - She developed an ABC system very similar to the one used by Trudell's chief rival. Part of the reason French developed the ABC system was because Trudell'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. Inter the rates to t Data table Activity Allocation Base Activity Cost Allocation Rate Materials handling Machine setup.. Insertion of parts Finishing Number of parts Number of setups ..... Number of parts $5.50 per part $325.00 per setup hd the cost allo- $27.00 per part Finishing direct labor hours $52.00 per hour Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Activity Trudell Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Total Budgeted Allocation Rate Indirect Cost 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.) Trudell Corporation ABC Indirect Manufacturing Cost per Unit Activity Materials handling Machine setup Insertion of parts Finishing Total ABC allocated indirect cost Cost Quantity of Cost Allocation Allocated Activity Allocation Rate Base Used By: Cost Per Wheel Standard Deluxe Standard Deluxe 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.) Standard Deluxe = Manufacturing overhead