any help would be awesome! the first picture is the info needed to do the proble
ID: 2414822 • Letter: A
Question
any help would be awesome! the first picture is the info needed to do the problem
Mundy bma5 4 25a starte- Home nsert Page Layout Formulas ata Review Cut Pg Copy . Format PainterIU. Clipboard Paste Font Alignment 4 A For the upcoming year, Dettling's budgeted ABC manufacturing overhead allocation rates are as 6 follows: Activity Cost Allocation Base Allocation Rate 4.50 per part Number of setups S 325.00 per setup Number of parts 31.00 per part Activity Materials handling Number of parts $ 4 10 Insertion of part Finishing direct labor hours51.00 per hour 12 13 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 14 data for the upcoming year are as follows 16 Standard Deluxe Units 1,000 Expected production for each model Parts per wheel Setups per 1,000 wheels Finishing direct labor hours per wheel Total direct labor hours per wheel 17 4.0 20.0 1.0 2.7 6.0 20.0 3.0 3.8 20 21 INSTRUCTIONS ENTERANSWERS 3 4 5 6Explanation / Answer
1. The total budgeted manufacturing overhead cost for the upcoming year Activity Total budgeted Indirect cost Material handling $45,000 Machine setups $13,000 Insertion of parts $310,000 Finishing $204,000 Total budgeted indirect costs $572,000 Working notes: Activity Standard Deluxe Total Units 1000 1000 Parts per wheel 4 6 Parts for 1000 wheels 4000 6000 Material handing rate per part $4.50 $4.50 Material handing cost $18,000 $27,000 $45,000 Insertion of parts cost per part $31 $31 Insertion of parts $124,000 $186,000 $310,000 Setups per 1,000 wheels 20 20 Machine setup rate per setup $325 $325 Machine setup cost $6,500 $6,500 $13,000 Finishing direct labour hour per wheel 1 3 Finishing direct labour hour for 1000 wheels 1000 3000 Finishing rate per hour $51 $51 Finishing cost $51,000 $153,000 $204,000 2. The manufacturing overhead cost per wheel of each model using ABC Activity Allocated Activity Cost Per Wheel Standard Deluxe Materials handling $18.00 $27.00 Machine setups $6.50 $6.50 Insertion of parts $124.00 $186.00 Finishing $51.00 $153.00 Total ABC Allocated indirect cost $199.50 $372.50 3. Company's traditional plant wide overhead rate Budgeted manufacturing overhead cost $572,000 Total direct labour hours 6500 Plant overhead rate per direct labour hour $88 Manufacturing overhead cost per wheel under the traditional system Rate per wheel DLH per wheel Overhead cost per wheel Standard $88 2.7 $237.60 Deluxe $88 3.8 $334.40
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