Question

119-18 (similar to) Fadely, in adity-based costing to account for s ome budgleday for and the matheon to view the b o dy) recting rooms Company managers have identified for manufacturing t hei r rational arts and fing. The Read the Requirement 1. Compute the predetermined overhead location rate for each Begin by selecting the formato e le the produced wheat H ocational Then enter the amounts to compute the location rate for Predend OH SSSSS 123 inding 11 Cool Allocation base 10.000 Number of parts 3.000 Number of 8000 Number of parts 67000 Finishing direct later hours DOO m as dure they themes are 10 5 0 hours of fishing t e de 4000 art. Choose from ary drop down and then chok Check 6 CA

Answer 1

Material handling activity rate = Material handling budgeted cost / Budgeted number of parts

= 16,000/4,000

= $4 per part

Machine set up activity rate = Machine set up budgeted cost / Budgeted number of setups

= 3,000/10

= $300 per set up

Insertion of parts activity rate = Budgeted cost of insertion of parts/ Budgeted number of parts

= 48,000/4,000

= $12 per part

Finishing activity rate = Budgeted finishing cost / Budgeted finishing direct labor hours

= 87,000/1,500

= $58 per finishing direct labor hour

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