ACC 256 - Managerial Accounting - Spring 2022 = Homework: Chapter 4 - HW #4 Question 3, E4-22A (similar to) Part 6 of 7 Frances Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: (Click the icon to view the data.) HW Score: 43.33%, 2.17 of 5 points Points: 1.17 of 2 Frances Company expects to produce 1,000 chrome wheels during the year. The wheels are expe require 10 setups, and consume 1,800 hours of finishing time. (Click the icon for completed job data.) Read the requirements. Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity. Data table Allocation Base 13,500 Number of parts 4,000 Number of setups 48,600 Number of parts Finishing direct labor hours Activity cost Total activity overhead (est.) Mat. handling $ 13,500 Total activity allocation base 2,700 = allocation rate = $ 5 per part Activity Total Budgeted Manufacturing Overhead Cost Mach setup $ 4,000 10 = $ 400 per setup Materials handling. $ Insertion $ 48,600 2,700 = $ 18 per part Machine setup Finishing $ 82,800 1,800 = $ 46 per hour Insertion of parts Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420. Finishing $ 82,800 148,900 MOH Cost Total. Activity Materials handling Machine setup Insertion of parts Finishing Total Help me solve this Video Get more help - Type here to search O D (DELL W Print Done < > 38F > (8) Clear all C