Question

E4-25 Data Table 1Data Table Several The number of computer system upcoming year a Alana Me (Cl For the EEB (Cli Standard Deluxe 4.0 20.0 1.0 2.7 Activity Cost Allocation Rate (Click the ico llows: Parts per wheel Setups per 1,000 wheels Finishing direct labor hours per wheel Total direct labor hours per wheal 6 0 20.0 3.0 3 8 Activity Allocation Base Read the reg Materials handling Machine setup Insertion of parts Finishing Number of parts Number of setups Number of parts Finishing direct labor hours 4.50 per part S 325.00 per setup $ 31.00 per part $ Require (Enter the rates to two decim The company's managers expect to produce 1,000 units of each model during the year 51.00 per hour PrintDone Print Done Materials Machine setups Insertion of parts She developed an ABC system very similar to the one used by Detting's chief rival. Part of the reason Metzgar developed the ABC system was because Dettling'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 Enter any number in the edit fields and then click Check Asystem. Before adopting the new ABC system, the company had used a plantwide overhead rate based on direct labor hours that was developed years ago parts

Answer 1

Requirement 1	Computation of the total budgeted manufacturing overhead cost for the upcoming year
	Activity	Budgeted Quantity of Cost Allocation base	Activity cost Allocation Rate	Total Budgeted Indirect Cost
	Material handling	10000	$4.50	$45,000.00
	Machine setup	40	$325.00	$13,000.00
	Insertion of part	10000	$31.00	$310,000.00
	Finishing	4000	$51.00	$204,000.00
	Total			$572,000.00
	Working Note:
	Budgeted quantity of Cost allocation base
	Number of parts	Standard	Deluxe	Total
	Part per wheel (a)	4	6
	Number of units expected to produce (b)	1000	1000
	Total number of parts (a x b)	4000	6000	10000
	Number of setups
	Setup per 1000 wheel	20	20	40
	Finishing direct labor hour
	Finishing direct labour hour per wheel (a)	1	3
	Number of units expected to produce (b)	1000	1000
	Finishing direct labor hours (a x b)	1000	3000	4000