Total Budgeted Manufacturing Activity Overhead Cost Allocation Base $ Materials handling .... Machine setup ........ Insertion of parts ..... 12,000 3,400 48,000 Number of parts Number of setups Number of parts Finishing. 80,000 Finishing direct labor hours $ 143,400 Total IULO . . . . . . . . . . . . . 1. Compute the cost allocation rate for each activity. 2. Compute the manufacturing overhead cost that should be assigned to Job 420. 3. Compute the manufacturing overhead cost that should be assigned to Job 510. Franklin Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Franklin Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 setups, and consume 2,000 hours of finishing time. Job 420 used 300 parts, required 5 setups, and consumed 130 finishing hours. Job 510 used 400 parts, required 6 setups, and consumed 320 finishing hours. Read the requirements. Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity. Activity cost allocation rate