West Horizon uses ABC to account for its chrome wheel manufacturing process. Company West Horizon expects to produce 1,000 chrome wheels during the year. The wheels are managers have identified four manufacturing activities that incur manufacturing overhead costs: expected to use 2,700 parts, require 10 setups, and consume 1,800 hours of finishing time. materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs (Click the icon for completed job data) for the upcoming year and their allocation bases are as follows: (Click the icon to view the data.) 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 Total activity allocation base 2,700 Mat, handling Total activity overhead (est.) 13,500 4,000 $ = $ 5 per part Mach setup $ 10 $ $ 400 per setup Insertion $ 48,600 2,700 = $ 18 per part Finishing $ 82,800 1,800 = $ 46 per hour Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. Activity MOH Cost Materials handling Machine setup Insertion of parts Finishing Total X i Data Table Total Budgeted Manufacturing Overhead Cost Allocation Base $ Activity Materials handling Machine setup Insertion of parts 13,500 Number of parts 4,000 Number of setups 48,600 Number of parts 82,800 Finishing direct labor 148,900 Finishing .. $ Total. Print Done i X More Info Job 420 used 300 parts, required 2 setups, and consumed 130 finishing hours. Job 510 used 500 parts, required 5 setups, and consumed 320 finishing hours. Print Done