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For the LODDE N Data Table i Data Table 20.0 Activity Cost Activity Allocation Base Allocation Rate Materials handling .... N

Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC. (Round the cost allocation base to
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Answer #1
Zippy Corporation
ABC Indirect Manufacturing cost per unit
Activity Cost allocation rate Quantity of cost allocation base used by: Allocated activity cost per wheel
Standard Deluxe Standard Deluxe
Materials handling 5.50 8.000 10.000 44.00 55.00

Machine setup

325.00

0.020

[ 20 / 1000 ]

0.020

[ 20 / 1000 ]

6.50

6.50

Insertion of parts 27.00 1.500 2.500 40.50 67.50
Finishing 52.00 2.700 3.800 140.40 197.60
Total ABC allocated indirect cost 231.40 326.60
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