Question

finish the following requirements given the below information

Homework: CH4 Save Score: 0 of 5 pts 5 of 6 (0 complete) HW Score: 0%, 0 of 30 pts E4-25A (book/static) Question Help Several years after reengineering its production process. Dettling Corporation hired a new controller, Alana Metzgar. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because Dettling recently installed a plantwide computer system. Dettling produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) For the upcoming year. Dettling's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Read the requirements Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. Enter the rates to two decimal places.) Data Table - X Data Table - X Dettling Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Total Budgeted Standard Deluxe Activity Cost Activity Cost Allocation Base Allocation Rate Indirect Cost Activity Allocation Base Allocation Rate Materials handling Machine setups Parts per wheel ......... 4.0 6.0 Setups per 1,000 wheels .......... 20.0 20.0 Finishing direct labor hours per wheel 1.0 3.0 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. Materials handling Number of parts Machine setup.... Number of setups Insertion of parts ... Number of parts Finishing direct labor Finishing ........ hours $ 4.50 per part $325.00 per setup S 31.00 per part Insertion of parts S 51.00 per hour Finishing Total budgeted indirect cost Print Done Print Done 0 Requirements - X More Info 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. She developed an ABC system very similar to the one used by Dettling'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 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. Print Done Print Done Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check Answer Check Answers

Answer 1

1.

	Budgeted Quantity	Activity Cost	Total Budgeted Cost
Material Handling	10000	$             4.50	$          45,000
Machine Setups	40	$        325.00	$          13,000
Insertion of parts	10000	$          31.00	$       3,10,000
Finishing	4000	$          51.00	$       2,04,000
Total Budgeted indirect cost			$      5,72,000

2.

Manufacturing Overhead
	Standard	Deluxe
Material Handling	$          18,000	$        27,000
Machine Setups	$            6,500	$           6,500
Insertion of parts	$       1,24,000	$     1,86,000
Finishing	$          51,000	$     1,53,000
Total Overhead	$      1,99,500	$     3,72,500
Units	1000	1000
Overhead cost per unit	$          199.50	$        372.50

3. Total Direct labor hours = 1000 x 2.7 + 1000 x 3.8 = 6500 hours
Overhead rate = $572000/6500 = $88 per direct labor hour

Overhead cost per unit
Standard = 2.7 x $88 = $237.60
Deluxe = 3.8 x $88 = $334.40